Is Chewy, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Chewy, Inc. has moved from very expensive to expensive. Based on the current metrics, the company appears to be overvalued. Key ratios include a P/E ratio of 51, a Price to Book Value of 76.52, and an EV to EBITDA of 85.22, all of which suggest a high valuation relative to its earnings and assets.
In comparison to peers, Chewy's P/E ratio of 51 is significantly higher than Global Industrial Co.'s fair P/E of 23.39 and Etsy, Inc.'s risky P/E of 20.43, indicating that Chewy is trading at a premium. Furthermore, while Chewy has shown a strong 1Y return of 24.34% compared to the S&P 500's 17.14%, its longer-term performance has lagged, with a 5Y return of -27.51% versus the S&P 500's 96.61%. This discrepancy reinforces the notion that Chewy may be overvalued in the current market.