Is BJ's Restaurants, Inc. overvalued or undervalued?

As of 30 June 2025, BJ's Restaurants, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is overvalued based on its current metrics, with a P/E ratio of 43, a Price to Book Value of 2.63, and an EV to EBIT of 26.60. In comparison to peers, Chuy's Holdings, Inc. has a P/E of 19.29 and Portillo's, Inc. has a P/E of 14.11, both suggesting that BJ's is trading at a premium relative to its industry.
The stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -14.53% compared to the S&P 500's 12.22%. This trend reinforces the notion that BJ's Restaurants, Inc. is not only overvalued but also struggling to deliver competitive returns.