Is Driven Brands Holdings, Inc. overvalued or undervalued?

As of 25 February 2025, Driven Brands Holdings, Inc. has moved from an expensive to a risky valuation grade. The company is currently considered overvalued based on its financial metrics. Key ratios include a P/E ratio of 33, an EV to EBITDA of 13.20, and a Price to Book Value of 4.69, which are significantly higher than those of its peers.
In comparison, Life Time Group Holdings, Inc. has a P/E of 26.98 and an EV to EBITDA of 10.47, while Valvoline, Inc. shows a P/E of 17.31 and an EV to EBITDA of 13.34. These figures suggest that Driven Brands is trading at a premium relative to its industry peers. Additionally, despite a strong one-year return of 45.37%, the overall performance over three years has been negative, which further supports the conclusion that the stock is overvalued.