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 shift towards a more cautious outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.50 and an EV to EBITDA ratio of 6.93, which suggests that the market may not be accurately reflecting the company's financial struggles. Additionally, the negative ROCE of -2.29% and ROE of -0.98% further highlight the challenges the company is facing.
In comparison to its peers, Destination XL Group, Inc. has a significantly lower EV to EBITDA ratio than Shoe Carnival, Inc. at 8.6559 and Caleres, Inc. at 4.7906, which are both categorized as attractive. This disparity indicates that the market is pricing Destination XL Group, Inc. unfavorably relative to its more successful competitors. Notably, while the company has seen a strong 5-year return of 410.85%, its year-to-date return of -45.72% starkly contrasts with the S&P 500's 12.22%, reinforcing the notion that the stock may be overvalued in the current market environment.