Is Dillard's, Inc. overvalued or undervalued?

As of 16 July 2025, the valuation grade for Dillard's, Inc. has moved from attractive to fair. Based on the current metrics, the company appears to be overvalued. Key ratios include a P/E ratio of 84, a Price to Book Value of 26.06, and an EV to EBITDA of 53.23. In comparison, Macy's, Inc. has a much lower P/E of 7.37 and an EV to EBITDA of 3.93, indicating a significant valuation disparity.
Dillard's, Inc. has shown strong performance with a year-to-date return of 39.45%, significantly outpacing the S&P 500's 12.22% during the same period. However, the high valuation ratios suggest that the stock may not be justified at its current price levels.