Is Genesco, Inc. overvalued or undervalued?

As of 1 December 2023, the valuation grade for Genesco, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, particularly when considering its Price to Book Value of 0.49, an EV to EBITDA of 8.02, and a negative ROE of -2.67%. In comparison, peers such as Shoe Carnival, Inc. and Caleres, Inc. are considered attractive, with P/E ratios of 15.54 and 7.43, respectively, highlighting a significant disparity in valuation metrics.
Despite a strong one-month return of 37.36% compared to the S&P 500's 2.33%, Genesco's year-to-date performance shows a decline of 17.52%, contrasting sharply with the S&P 500's gain of 12.22%. This mixed performance further supports the notion that Genesco is currently overvalued relative to its peers and the broader market.