Is Kohl's Corp. overvalued or undervalued?

As of 12 March 2024, the valuation grade for Kohl's Corp. has moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company appears to be undervalued, supported by a P/E ratio of 14, a price to book value of 0.80, and an EV to EBITDA of 4.08, all of which suggest that the stock is trading at a discount compared to its intrinsic value.
In comparison to peers, Kohl's P/E ratio is notably lower than that of Dillard's, which stands at 120.79, and Ollie's Bargain Outlet, which has a P/E of 40.14, highlighting its relative attractiveness. Additionally, Macy's, another very attractive peer, has a P/E of 7.37, further reinforcing the notion that Kohl's is undervalued in the retail sector. Despite a challenging one-year return of -8.38% compared to the S&P 500's 17.14%, Kohl's has outperformed the index over the past month with a return of 27.42% versus 2.33%, suggesting a potential turnaround in sentiment.