Is Burlington Stores, Inc. overvalued or undervalued?

As of 24 October 2025, Burlington Stores, Inc. moved from fair to expensive, indicating a shift in its valuation stance. The company is currently overvalued based on its metrics, with a P/E ratio of 35, an EV to EBITDA of 18.94, and a PEG ratio of 1.08. In comparison to peers, Burlington's P/E ratio is significantly higher than Tapestry, Inc., which has a P/E of 16.52, suggesting that Burlington may be priced too high relative to its earnings potential.
Additionally, Burlington's recent stock performance shows a YTD return of -5.68%, while the S&P 500 has returned 15.47% in the same period, reinforcing the notion that the stock may not be a favorable investment at its current valuation. Overall, the combination of high valuation ratios and underperformance relative to the broader market supports the conclusion that Burlington Stores, Inc. is overvalued.