Is Steven Madden Ltd. overvalued or undervalued?

As of 30 July 2025, the valuation grade for Steven Madden Ltd. has moved from fair to very expensive, indicating a significant shift in its market perception. The company appears overvalued given its current metrics, particularly with a P/E ratio of 18, which is notably lower than its peer average of approximately 38.86, and an EV to EBITDA ratio of 12.37 compared to peers like Ralph Lauren Corp. at 31.97. Additionally, the Price to Book Value stands at 3.57, suggesting that the stock may be trading at a premium relative to its book value.
In comparison to its peers, Skechers U.S.A., Inc. is very attractive with a P/E of 12.84 and an EV to EBITDA of 8.28, while VF Corp. is expensive with a P/E of 24.89. This highlights that Steven Madden Ltd. is not only overvalued relative to its direct competitors but also underperforming in terms of returns, with a year-to-date return of -23.10% compared to the S&P 500's 12.22%. Overall, the combination of high valuation ratios and poor relative performance suggests that Steven Madden Ltd. is overvalued in the current market environment.