Is Wolverine World Wide, Inc. overvalued or undervalued?

As of 26 September 2025, the valuation grade for Wolverine World Wide, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its current valuation. The company is considered overvalued, with a P/E ratio of 35, a Price to Book Value of 6.30, and an EV to EBITDA of 19.23, all of which are substantially higher than many of its peers. For instance, Kontoor Brands, Inc. has a P/E of 17.91 and an EV to EBITDA of 14.31, while Levi Strauss & Co. shows a P/E of 14.44 and an EV to EBITDA of 9.86, underscoring Wolverine's relative overvaluation.
In terms of performance, Wolverine World Wide has seen a 62.28% return over the past year, significantly outperforming the S&P 500's 15.64% return during the same period. However, its longer-term performance has lagged, with a 3-year return of 66.05% compared to the S&P 500's 81.77%. This mixed performance further supports the view that the stock is overvalued given its high valuation ratios relative to peers.