Is Birkenstock Holding Plc overvalued or undervalued?

As of 16 June 2025, the valuation grade for Birkenstock Holding Plc has moved from expensive to very expensive. The company is currently overvalued, as indicated by its P/E ratio of 37, which is significantly higher than the peer average of approximately 35.3. Additionally, the EV to EBITDA ratio stands at 21.09, compared to the peer average of 16.52, further supporting the overvaluation assessment. The PEG ratio of 0.33 suggests that the stock may be priced too high relative to its growth potential.
In comparison to its peers, Birkenstock's financial metrics highlight its overvaluation, particularly when looking at the EV to Sales ratio of 5.42 against the industry standard. The company's return on capital employed (ROCE) is 13.14%, which, while respectable, does not justify its high valuation in the current market context. Furthermore, Birkenstock's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -7.98% compared to the index's 2.44%, indicating potential investor concerns regarding its current pricing.