Is Victoria's Secret & Co. overvalued or undervalued?

As of 29 May 2025, the valuation grade for Victoria's Secret & Co. has moved from attractive to very attractive. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 9, an EV to EBITDA of 4.75, and a PEG ratio of 0.40, which indicate strong potential for growth relative to its price.
In comparison to peers, Urban Outfitters, Inc. has a P/E of 13.88 and an EV to EBITDA of 9.18, while Boot Barn Holdings, Inc. shows a P/E of 27.50, suggesting that Victoria's Secret & Co. is trading at a significant discount relative to these competitors. Despite a challenging recent performance, with a year-to-date return of -55.14% compared to the S&P 500's 2.44%, the company's solid ROE of 30.84% and ROCE of 19.94% indicate robust operational efficiency, reinforcing the undervaluation narrative.