Is The Buckle, Inc. overvalued or undervalued?

As of 6 June 2025, The Buckle, Inc. has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 11, while the industry average P/E is approximately 11.63, indicating a slight underperformance relative to peers. Additionally, the EV to EBITDA ratio is 7.72, which is comparable to Urban Outfitters, Inc. at 9.18, and Boot Barn Holdings, Inc. at 16.49, suggesting that The Buckle's valuation is more conservative.
The Buckle's dividend yield is exceptionally high at 809.05%, and it boasts a remarkable ROCE of 102.27% and an ROE of 43.98%, reflecting strong profitability and efficient capital use. Compared to its peers, The Buckle's valuation metrics indicate that it is positioned fairly within the market. Notably, the company's stock has outperformed the S&P 500 over the past year, with a return of 19.81% compared to the index's 10.26%, reinforcing its competitive standing despite the recent grade change.