Is J.Jill, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for J.Jill, Inc. has moved from expensive to attractive, indicating a shift in perception towards the company's value. The company appears to be undervalued, with a P/E ratio of 5, significantly lower than peers like Shoe Carnival, Inc. with a P/E of 15.54, and Caleres, Inc. at 7.43. Additionally, J.Jill's EV to EBITDA ratio stands at 3.26, which is more favorable compared to the industry average, suggesting that the company is trading at a discount relative to its earnings potential.
In terms of performance, J.Jill has shown a remarkable 514.83% return over the past five years, although it has underperformed the S&P 500 year-to-date with a return of -32.15% compared to the index's 12.22%. The company's strong ROCE of 44.76% and ROE of 44.74% further reinforce its operational efficiency and profitability, making it an attractive investment opportunity in the footwear industry.