Is Duluth Holdings, Inc. overvalued or undervalued?

As of 1 June 2023, Duluth Holdings, Inc. has moved from a fair to a risky valuation grade, indicating a significant deterioration in its financial health. The company is currently considered overvalued given its negative performance metrics, including a Price to Book Value of 0.42 and an EV to Sales ratio of 0.28. Additionally, the company has a troubling ROE of -27.01% and an ROCE of -13.24%, which highlight its struggles in generating returns for shareholders.
In comparison to its peers, Duluth Holdings, Inc. stands out negatively, particularly against Revolve Group, Inc., which boasts a P/E of 28.10 and an EV to EBITDA of 18.46, and Liquidity Services, Inc., with a P/E of 29.47 and an EV to EBITDA of 15.23. The stark contrast in valuation ratios underscores the challenges faced by Duluth Holdings. Furthermore, the company has underperformed significantly against the S&P 500, with a year-to-date return of -36.89% compared to the index's 2.44%, reinforcing the notion that it is currently overvalued.