Is Shoe Carnival, Inc. overvalued or undervalued?

As of 11 September 2025, the valuation grade for Shoe Carnival, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued based on its current metrics, including a P/E ratio of 12, an EV to EBITDA of 6.63, and a Price to Book Value of 1.21. In comparison, its peer Caleres, Inc. has a P/E ratio of 7.43, suggesting that Shoe Carnival may offer better value despite its higher valuation ratios.
While Shoe Carnival's recent stock performance has been disappointing, with a year-to-date return of -31.35% compared to the S&P 500's 12.22%, its long-term returns over five years of 20.99% indicate potential for recovery. This suggests that despite short-term volatility, the company's fundamentals may support a more favorable valuation in the future.