Is Destination XL Group, Inc. overvalued or undervalued?

As of 29 May 2025, the valuation grade for Destination XL Group, Inc. has moved from expensive to risky, indicating a significant shift in its financial outlook. The company is currently considered overvalued based on its financial ratios and peer comparisons. Key ratios include a Price to Book Value of 0.50, an EV to EBITDA of 6.93, and a ROCE of -2.29%.
In comparison to its peers, Destination XL Group, Inc. has a notably negative P/E ratio of -54.75, while Winmark Corp. shows a P/E of 38.17 and Shoe Carnival, Inc. has a more favorable P/E of 12.12. The company's recent stock performance has been poor, with a year-to-date return of -60.97%, significantly underperforming the S&P 500, which has returned 2.44% in the same period. This combination of factors suggests that Destination XL Group, Inc. is not only overvalued but also faces considerable challenges ahead.