Is Shoe Carnival, Inc. overvalued or undervalued?

As of 26 September 2025, the valuation grade for Shoe Carnival, Inc. moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued, with a P/E ratio of 12, compared to its peer Caleres, Inc. which has a P/E of 7.43, and an EV to EBITDA ratio of 6.63, which is higher than Caleres' 4.79. Additionally, Shoe Carnival's Price to Book Value stands at 1.21, suggesting it is trading at a reasonable valuation relative to its assets.
Despite the attractive valuation metrics, the company's recent stock performance has been disappointing, with a year-to-date return of -35.07% compared to the S&P 500's gain of 12.96%. Over the last five years, Shoe Carnival has returned 24.85%, which is significantly lower than the S&P 500's 101.42%, reinforcing the notion that while the stock may be undervalued, it has struggled to keep pace with broader market returns.