Is Duluth Holdings, Inc. overvalued or undervalued?

As of 1 June 2023, the valuation grade for Duluth Holdings, Inc. moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued, particularly given its negative earnings and poor return metrics. Key valuation ratios include a Price to Book Value of 0.42, an EV to Sales ratio of 0.28, and an EV to Capital Employed ratio of 0.63, all suggesting that the company is not generating sufficient returns relative to its asset base.
In comparison to peers, Duluth Holdings, Inc. has a significantly lower EV to EBITDA ratio of -37.18, while Beyond, Inc. reports -4.93 and 1-800-FLOWERS.COM, Inc. shows -357.71, indicating that Duluth's valuation metrics are among the weakest in its peer group. Additionally, the company's recent stock performance has been notable, with a 100% return over the past month compared to the S&P 500's 2.33%, though its long-term performance remains concerning with a 67.4% decline over the last five years versus a 96.61% gain for the index.