Is Signet Jewelers Ltd. overvalued or undervalued?

As of 17 October 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, with a P/E ratio of 12, a Price to Book Value of 2.56, and an EV to EBITDA ratio of 6.81. In comparison, Dick's Sporting Goods, Inc. has a significantly higher P/E ratio of 30.66, while Lithia Motors, Inc. shows a more favorable EV to EBITDA of 10.97, highlighting the relative expense of Signet Jewelers.
Despite the overvaluation, Signet Jewelers has shown strong performance, with a year-to-date return of 27.91% compared to the S&P 500's 13.30%. However, over the past three years, its return of 71.72% trails the S&P 500's 81.19%, suggesting that while the stock has performed well recently, it may not be justified at its current price level.