Is America's Car-Mart, Inc. overvalued or undervalued?

As of 17 October 2025, America's Car-Mart, Inc. has moved from a very attractive to a fair valuation grade. The company appears to be overvalued given its high P/E ratio of 110, compared to peers like Monro, Inc. with a P/E of 23.95 and Betterware de México SAB de CV at 18.74. Additionally, the EV to EBITDA ratio stands at 16.99, which is significantly higher than Monro's 7.36, suggesting that the market is pricing in excessive growth expectations.
The PEG ratio of 0.92 indicates that the stock may not be as undervalued as it seems, especially when compared to MarineMax, Inc. which has a PEG of 0.00. Furthermore, the company's returns have significantly lagged behind the S&P 500, with a year-to-date return of -51.47% compared to the index's 13.30%, reinforcing the notion that America's Car-Mart is currently overvalued.