Even if you never heard of L Brands (LB), guys have definitely shopped at one of its locations. The company is just a holding that owns five brands everyone is familiar with: Victoria's Secret, La Senza (one would think they are competitors but they work for the same owners), Bath and Body Works, Pink, and Henri Bendel. Selling lingerie, accessories, and high-end body lotions has been very profitable for the company. Simply take a look at how the market loved the company's stock: (Source: Morningstar) The company's shares have increased eight-fold since 2010! On top of that, L Brands has generated sufficient excess cash flows to pay killer dividends and fund buybacks: (Source: Morningstar. Graph by author) However, since then, the company has become more of a value stock that a growth stock, as recent data show: (Source: Morningstar) As we can see from the above, the company's revenue growth has slowed down, while it P/S ratio is still above average by a wide margin. The P/E ratio is hovering slightly above the industry's average, although the above-average net income growth and the stellar key margins can explain the premium valuation.A friend of mine ran a DCF model on L Brands and came up with a valuation of approximately $50 per share. I find this way too conservative given the current stock price of ~$95 per share: (Source: Google Finance) There are two major reasons why I would not short the stock: (1) I do not believe the market is off by 50% as the DCF model shows. Although I am not a supporter of the Efficient Market Hypothesis, I do not think that investors can be off by this much given that the relative valuation if reasonable, and I do not see any fundamental non-financial factors that can halve the company's valuation in the short-term. (2) L Brands is paying dividends. Even though the current yield is slightly above 2%, I am not willing to pay 2% per annum to the stock's owners (and pay other fees to my broker). I agree that the stock is a bit pricey at current valuations but taking a radical action such as shorting the stock is simply not for me given the current risk-return matrix. My overall feeling is that the stock is currently a HOLD candidate. I would consider buying it a sub-80 level.