Is Dick's Sporting Goods, Inc. overvalued or undervalued?

As of 12 August 2025, the valuation grade for Dick's Sporting Goods, Inc. has moved from very attractive to attractive, indicating a shift in perceived value. The company appears to be fairly valued, with a P/E ratio of 21, a Price to Book Value of 7.85, and an EV to EBITDA of 12.67. In comparison, BJ's Wholesale Club Holdings, Inc. has a P/E of 23.94, while Penske Automotive Group, Inc. shows a lower P/E of 12.91, suggesting that Dick's Sporting Goods is positioned competitively within its peer group.
Despite the recent downgrade in valuation grade, Dick's Sporting Goods has shown strong long-term performance, with a 3-year return of 103.52%, significantly outpacing the S&P 500's return of 70.41% over the same period. However, in the short term, the stock has underperformed relative to the S&P 500, with a year-to-date return of -0.71% compared to the index's 12.22%.