Ruby: Humanize a string (the first "real" ruby method I've ever written. It was approximately 2 years ago)

humanize.rb

# words must be seperated by an underscore
# ex. "hello_there-pal" isnt valid but "hello_there_pal" is

# humanize "hello_there" # => "Hello There"
# humanize "hello there" # => "Hello There"
# humanize "hello_there", {format: :class,without: :dashes, separator: :space}
	# options
		# format: 
			# :class -> change a string like "hello string" to "HelloString"
			# :sentence -> change a string like "hello_String" to "Hello string"
			# :allcaps -> changes a string like "hello_string" to "Hello_String"
			# :nocaps -> changes a string like "hello_string" to "hello string"
			
def humanize (value, options = {})
  
  if options.empty?
  	options[:format] = :sentence
  end

  values = []
  
if value.include? '_'
	values = value.split('_')
    
        values.each { |v| v.downcase! }  
   	
   	if options[:format] == :allcaps
   		values.each do |value|
   		 	value.capitalize!
   		end

   		if options.empty?
   			options[:seperator] = " "
   		end

   		return values.join " "
   	end

   	if options[:format] == :class
   		values.each do |value|
   		 	value.capitalize!
   		end

   		return values.join ""
   	end

   	if options[:format] == :sentence
   		values[0].capitalize!

   		return values.join " "
   	end

   	if options[:format] == :nocaps
   		return values.join " "
   	end
end
    

end
   
puts humanize "hello_there", format: :class

I know rails has something like this but, like the title says this is my first real ruby method and I wanted to test out my skills. What do you guys think?

You could change this part (and likewise with the other each loops to reduce bulk)

values.each_index do |index|  
   # lower case each item in array
   values[index].downcase!
end

To this

values.each { |v| v.downcase! }  

Also you can improve the formatting quite a lot.

values.each { |v| v.downcase! } can be to this further values.each(&:downcase!)