Is Levi Strauss & Co. overvalued or undervalued?

As of 12 June 2025, the valuation grade for Levi Strauss & Co. has moved from attractive to fair, indicating a shift in its perceived market value. The company is currently fairly valued based on its financial metrics, with a P/E ratio of 11, a Price to Book Value of 3.39, and an EV to EBITDA of 8.26. In comparison to peers, Ralph Lauren Corp. has a significantly higher P/E ratio of 45.59, while Crocs, Inc. stands out as very attractive with an EV to EBITDA of 10.59.
Despite its fair valuation, Levi Strauss & Co. has shown mixed performance against the S&P 500, with a year-to-date return of 4.10% compared to the index's 2.44%. The company's strong ROE of 29.97% and ROCE of 26.59% suggest robust profitability, yet the overall valuation reflects a more cautious outlook in the current market environment.