Is Signet Jewelers Ltd. overvalued or undervalued?

As of 2 September 2025, the valuation grade for Signet Jewelers Ltd. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, including a P/E ratio of 12, which is lower than the peer average of 14.61 for Signet, and an EV to EBITDA ratio of 6.81, which is also below the industry average. Additionally, the Price to Book Value stands at 2.56, suggesting a premium over its book value compared to peers like Lithia Motors, which has a P/E of 9.59.
In comparison to its peers, Signet Jewelers Ltd. has a lower valuation profile, with Dick's Sporting Goods showing a significantly higher P/E of 30.66, while Lithia Motors is at 9.59. Despite this, Signet has demonstrated strong returns, outperforming the S&P 500 with a year-to-date return of 20.02% compared to the index's 12.22%. Overall, the combination of its valuation metrics and peer comparisons suggests that Signet Jewelers Ltd. is currently overvalued.