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

As of 21 November 2025, the valuation grade for BJ's Wholesale Club Holdings, Inc. moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 27, a Price to Book Value of 7.96, and an EV to EBITDA of 14.59. In comparison, Penske Automotive Group, Inc. has a more attractive P/E ratio of 12.91, while CarMax, Inc. shows a higher EV to EBITDA of 116.16, suggesting BJ's is less favorably valued compared to its peers.
In terms of recent performance, BJ's has underperformed against the S&P 500 over the past year, with a return of -1.27% compared to the index's 11.00%. This trend is further highlighted in the three-year return, where BJ's achieved 25.27%, significantly lower than the S&P 500's 67.17%, reinforcing the notion that the stock may be fairly valued in light of its recent performance.