Is Zumiez, Inc. overvalued or undervalued?

As of 5 June 2025, the valuation grade for Zumiez, Inc. has moved from risky to attractive, indicating a significant improvement in its investment appeal. The company is currently considered undervalued, with a P/E ratio of 102, which is higher than the peer average of 38.17 for Winmark Corp. and 12.12 for Shoe Carnival, Inc. Additionally, Zumiez has a Price to Book Value of 0.76 and an EV to EBITDA ratio of 6.76, suggesting that its market valuation does not fully reflect its underlying assets and earnings potential.
In comparison to its peers, Zumiez's PEG ratio of 0.90 is favorable, especially when contrasted with Winmark Corp.'s risky valuation and high P/E ratio. Despite a challenging year-to-date return of -33.54% compared to the S&P 500's 2.44%, the recent grade change and attractive valuation metrics suggest that Zumiez may present a compelling investment opportunity moving forward.