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

As of 28 August 2025, the valuation grade for Ollie's Bargain Outlet Holdings, Inc. has moved from very expensive to expensive. This indicates that the company is currently overvalued. Key valuation ratios include a P/E ratio of 38, a Price to Book Value of 4.47, and an EV to EBITDA of 23.34. In comparison to peers, Ollie's P/E ratio is notably higher than Dillard's, which stands at 120.79, and lower than Macy's, which is at 7.37, highlighting a significant disparity in valuation within the retail sector.
Despite the company's strong recent performance, with a year-to-date return of 26.05% compared to the S&P 500's 12.22%, the elevated valuation ratios suggest that the stock may not be a prudent investment at its current price of 138.31. Overall, the combination of high valuation metrics and the recent downgrade in grade supports the conclusion that Ollie's Bargain Outlet is overvalued.