Is Caleres, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Caleres, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued based on its current metrics. Key valuation ratios include a P/E ratio of 5, a Price to Book Value of 0.76, and an EV to EBITDA of 4.34, all suggesting that the stock is trading at a significant discount relative to its earnings and assets.
In comparison to its peers, Caleres, Inc. has a lower P/E ratio than the industry average of approximately 7.43 and a more favorable EV to EBITDA ratio compared to the industry standard of around 4.79. This reinforces the notion that Caleres is undervalued relative to its competitors. Notably, the stock has underperformed against the S&P 500 over the past year, with a return of -54.52% compared to the index's 17.14%, which further emphasizes the potential for recovery and value realization in the stock.