Is Chewy, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Chewy, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value. However, the company remains overvalued based on its current metrics. The P/E ratio stands at 51, significantly higher than the industry average, while the EV to EBITDA ratio is at 85.22, further illustrating the high valuation relative to earnings. Additionally, the PEG ratio is exceptionally low at 0.11, suggesting that growth expectations may not justify the current price.
In comparison to peers, Chewy, Inc. has a P/E ratio of 44.86, which is higher than that of Global Industrial Co. at 23.39, indicating that Chewy is priced at a premium despite its performance. The company also lags behind Etsy, Inc., which has a P/E of 20.43, suggesting that investors are paying more for Chewy's earnings relative to its competitors. Over the past year, Chewy has outperformed the S&P 500 with a return of 29.61% compared to 16.90%, but its longer-term performance has been poor, with a 5-year return of -44.82% versus 95.99% for the index, reinforcing the notion that the stock is overvalued.