Is Dillard's, Inc. overvalued or undervalued?

As of 18 June 2025, Dillard's, Inc. has moved from a fair to attractive valuation grade. The company is currently considered undervalued, with a P/E ratio of 84, a Price to Book Value of 26.06, and an EV to EBITDA of 53.23. In comparison, a peer such as Nordstrom has a P/E ratio of approximately 85.59 and an EV to EBITDA of 54.34, indicating that Dillard's is slightly more attractive in terms of valuation metrics.
Despite recent underperformance relative to the S&P 500, with a year-to-date return of -6.58% compared to the index's 2.44%, the strong ROCE of 58.60% and ROE of 31.07% suggest robust operational efficiency. Overall, these factors contribute to the conclusion that Dillard's, Inc. is undervalued in the current market context.