Is Guess?, Inc. overvalued or undervalued?

As of 28 August 2024, the valuation grade for Guess?, Inc. has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, especially when considering its P/E ratio of 57, which, while high, is lower than Ralph Lauren Corp.'s P/E of 48.61 and significantly lower than the industry average. Additionally, Guess? has an EV to EBITDA ratio of 9.79, which is more favorable compared to Ralph Lauren's 31.97, suggesting a better valuation relative to earnings before interest, taxes, depreciation, and amortization.
In terms of performance, Guess?, Inc. has shown a 1-month return of 24.28%, outperforming the S&P 500's return of 2.33%, although it has lagged over the longer term with a 1-year return of -14.46% compared to the S&P 500's 17.14%. With a Price to Book Value of 3.23 and a Dividend Yield of 411.32%, the company presents a compelling case for investment relative to its peers, such as Kontoor Brands, Inc., which has a P/E of 17.91 and an EV to EBITDA of 14.31. Overall, these metrics suggest that Guess?, Inc. is positioned favorably in the market.