Is Genesco, Inc. overvalued or undervalued?

As of 1 December 2023, Genesco, Inc. has moved from a valuation grade of very expensive to risky, indicating a significant shift in its perceived value. The company is currently considered undervalued despite its challenges, as evidenced by a Price to Book Value of 0.49 and an EV to Sales ratio of 0.21. However, it is important to note that the company is loss-making, reflected in its negative P/E ratio and a ROE of -2.67%.
In comparison to its peers, Genesco's valuation metrics stand out, particularly when juxtaposed with Winmark Corp., which has a P/E of 38.17, and Shoe Carnival, Inc., with a P/E of 12.12. This suggests that Genesco may be trading at a discount relative to its industry peers. The company's recent stock performance has been poor, with a year-to-date return of -50.88%, contrasting sharply with the S&P 500's gain of 2.44% during the same period, reinforcing the notion that the stock may be undervalued in the current market context.