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

As of 17 October 2025, the valuation grade for BJ's Restaurants, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a P/E ratio of 43, which is substantially higher than its peers such as Chuy's Holdings, Inc. at 19.29 and Portillo's, Inc. at 14.11. Additionally, BJ's has a Price to Book Value of 2.63 and an EV to EBITDA ratio of 9.48, both of which suggest that the stock is trading at a premium compared to its industry counterparts.
In terms of recent performance, BJ's Restaurants has underperformed against the S&P 500, with a year-to-date return of -12.74% compared to the index's 13.30%. This trend continues over longer periods, with a 5-year return of -5.63% for BJ's against 91.29% for the S&P 500, reinforcing the notion that the stock is overvalued in the current market context.