Is Burlington Stores, Inc. overvalued or undervalued?

As of 7 July 2025, Burlington Stores, Inc. has moved from a fair to an expensive valuation grade. The company is currently overvalued, with a P/E ratio of 35, a Price to Book Value of 14.18, and an EV to EBITDA of 18.94. In comparison, its peer Tapestry, Inc. has a significantly lower P/E ratio of 16.52, indicating that Burlington's valuation is not justified relative to its industry peers.
Additionally, Burlington's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -7.08% compared to the S&P 500's 12.22%. This underperformance, along with its high valuation ratios, reinforces the conclusion that Burlington Stores, Inc. is overvalued in the current market environment.