Is Burlington Stores, Inc. overvalued or undervalued?

As of 29 May 2025, the valuation grade for Burlington Stores, Inc. has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 35, an EV to EBITDA of 18.94, and a ROE of 40.23%.
In comparison to its peers, Tapestry, Inc. has a P/E of 14.99 and an EV to EBITDA of 11.74, while Gap, Inc. shows a more attractive P/E of 9.10 and an EV to EBITDA of 4.72. Burlington's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -21.82% compared to the S&P 500's 2.44%, reinforcing the notion that the stock may be overvalued in the current market context.