Is Columbia Sportswear Co. overvalued or undervalued?

As of 14 November 2024, the valuation grade for Columbia Sportswear Co. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting a premium pricing. The company is currently considered overvalued. Key ratios include a P/E ratio of 15, an EV to EBIT of 10.45, and a ROCE of 23.75%, which, while strong, do not justify the current valuation when compared to peers.
In comparison, Kontoor Brands, Inc. has a P/E of 14.14 and an EV to EBITDA of 10.09, suggesting that Columbia Sportswear's valuation is higher despite similar earnings potential. Additionally, Ermenegildo Zegna NV, while not directly comparable due to its high P/E of 32.50, highlights the disparity in valuation within the industry. Furthermore, Columbia Sportswear's recent stock performance has underperformed against the S&P 500, with a year-to-date decline of 28.19% compared to a 2.44% gain for the index, reinforcing the notion that the stock is overvalued at its current price of 60.27.