Is Ollie's Bargain Outlet Holdings, Inc. overvalued or undervalued?

As of 5 June 2024, the valuation grade for Ollie's Bargain Outlet Holdings, Inc. has moved from expensive to very expensive. The company appears to be overvalued based on its current financial metrics. Key ratios include a P/E ratio of 38, an EV to EBITDA of 23.34, and a PEG ratio of 14.51, all of which are significantly higher than industry averages.
In comparison to peers, Ollie's P/E ratio of 37.40 stands out against Nordstrom, Inc. at 11.48 and PriceSmart, Inc. at 23.21, indicating a substantial premium for Ollie's. Additionally, the company's ROCE of 18.64% and ROE of 11.62% suggest decent profitability, but these metrics do not justify the high valuation multiples. Recent stock performance shows Ollie's has outperformed the S&P 500 over various periods, including a 31.48% return over the past year, which may contribute to the inflated valuation perception.