Is Burlington Stores, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Burlington Stores, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 35, an EV to EBITDA of 18.94, and a PEG ratio of 1.08. In comparison, Tapestry, Inc. is considered very expensive with a P/E of 16.52, highlighting Burlington's relatively better valuation within the industry.
Despite recent underperformance, with a year-to-date return of -10.71% compared to the S&P 500's 11.41%, Burlington has shown strong long-term performance with a 3-year return of 119.91%, significantly outpacing the S&P 500's 81.39%. This suggests that while the stock may currently be facing challenges, its long-term growth potential remains robust.