Is BJ's Wholesale Club Holdings, Inc. overvalued or undervalued?

As of 22 May 2025, BJ's Wholesale Club Holdings, Inc. has moved from a fair to a very attractive valuation grade. The company is currently considered undervalued, with a P/E ratio of 27, which is lower than its peer Williams-Sonoma, Inc. at 17.27 and Casey's General Stores, Inc. at 34.48. Additionally, BJ's has a robust ROCE of 32.23% and an ROE of 29.36%, indicating strong profitability relative to its equity.
In comparison to its peers, BJ's EV to EBITDA stands at 14.59, which is more favorable than Casey's at 17.52, while its PEG ratio of 2.29 is competitive against Williams-Sonoma's 0.00. The stock has shown impressive performance, with a year-to-date return of 28.49%, significantly outperforming the S&P 500's 2.44% during the same period, reinforcing the narrative of its undervaluation.