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 appears to be overvalued, 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, peers such as Chuy's Holdings, Inc. and Portillo's, Inc. have lower P/E ratios of 19.29 and 14.11, respectively, suggesting that BJ's Restaurants is trading at a premium relative to its industry.
Recent stock performance shows that BJ's Restaurants has underperformed against the S&P 500, with a year-to-date return of -12.74% compared to the S&P 500's 13.30%. This trend reinforces the notion that the stock may be overvalued given its high valuation ratios and poor relative performance.