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 but still suggesting that the stock is overvalued. The company is currently overvalued based on its high P/E ratio of 51, a price-to-book value of 76.52, and an EV to EBITDA ratio of 85.22. In comparison, Global Industrial Co. has a more reasonable P/E of 23.39 and EV to EBITDA of 15.52, while Etsy, Inc. shows a P/E of 20.43, highlighting the premium at which Chewy is trading relative to its peers.
Despite a strong one-year return of 29.61%, which outperformed the S&P 500's 16.90%, the long-term performance shows significant underperformance, with a five-year return of -44.82% compared to the S&P 500's 95.99%. This disparity reinforces the notion that Chewy, Inc. remains overvalued in the current market environment.