Is Shoe Carnival, Inc. overvalued or undervalued?

As of 20 March 2025, the valuation grade for Shoe Carnival, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 12, an EV to EBITDA of 6.63, and a Price to Book Value of 1.21, which suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to its peers, Shoe Carnival's P/E ratio of 12.12 is significantly lower than Winmark Corp.'s risky valuation with a P/E of 38.17, while Caleres, Inc. shows a more attractive P/E of 5.20. The dividend yield of 192.57% also stands out, indicating strong returns for shareholders. Despite recent underperformance relative to the S&P 500, the company's fundamentals suggest it is positioned for potential growth, reinforcing its undervalued status in the current market.