Is Citi Trends, Inc. overvalued or undervalued?

As of 28 November 2023, the valuation grade for Citi Trends, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health. Based on the available metrics, the company appears to be overvalued. The Price to Book Value stands at 4.88, while the EV to Sales ratio is relatively low at 0.69, and the ROE is notably negative at -33.41%.
In comparison to its peers, Shoe Carnival, Inc. has a more attractive P/E ratio of 15.54, while Caleres, Inc. shows a P/E of 7.43, highlighting the relative overvaluation of Citi Trends. Additionally, the company's recent performance has outpaced the S&P 500, with a year-to-date return of 29.33% compared to the index's 12.22%, suggesting some investor optimism despite the overall valuation concerns.