Deckers Trades at a Premium: Should You Restrain Buying the Stock?

Deckers Outdoor Corporation (DECK) is currently trading at a forward 12-month price-to-sales (P/S) multiple of 3.91X, which positions it at a premium compared with the Zacks Retail-Apparel and Shoes industry’s average of 1.61X and the Retail-Wholesale sector’s 1.63X. The stock is also trading above its median P/S level of 3.24 observed over the past five years. The valuation does suggest that Deckers is overvalued.DECK Looks Expensive From Valuation Standpoint Image Source: Zacks Investment Research Despite ...