Is Movado Group, Inc. overvalued or undervalued?

As of 30 May 2024, the valuation grade for Movado Group, Inc. moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued based on its current metrics, with a P/E ratio of 22, a Price to Book Value of 0.88, and an EV to EBITDA of 8.28. In comparison, peer Fossil Group, Inc. has a much higher P/E of 70.89, suggesting that Movado is trading at a discount relative to its peers.
The notable dividend yield of 377.89% and a ROCE of 6.81% further highlight the potential attractiveness of Movado Group, Inc. despite its lower return metrics compared to the S&P 500, where it has underperformed over the 1Y and 3Y periods, returning 2.09% and -33.14%, respectively, against 17.14% and 70.41% for the index. However, over the 5Y period, Movado has shown a positive return of 56.57%, which indicates potential for recovery and growth.