Is Abercrombie & Fitch Co. overvalued or undervalued?

As of 15 January 2025, Abercrombie & Fitch Co. has moved from a fair to an attractive valuation grade, indicating a shift in its perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 14, an EV to EBITDA of 8.57, and a PEG ratio of 0.53, which suggests strong growth potential relative to its price.
In comparison to its peers, Abercrombie's P/E ratio of 12.81 is lower than Tapestry, Inc.'s 14.99 and Burlington Stores, Inc.'s 32.69, highlighting its relative attractiveness. Additionally, Abercrombie's EV to EBITDA ratio of 7.72 is more favorable than Tapestry's 11.74 and Gap, Inc.'s 4.72, reinforcing its competitive position in the market. Despite a challenging year with a YTD return of -48.65% compared to the S&P 500's 2.44%, the long-term performance shows a significant recovery potential with a 3-year return of 312.47%.