Is European Wax Center, Inc. overvalued or undervalued?

As of 8 September 2025, the valuation grade for European Wax Center, Inc. has moved from expensive to fair. The company is currently fairly valued based on its metrics. Key ratios include a P/E ratio of 24, an EV to EBITDA of 9.45, and a Price to Book Value of 4.57. In comparison, Agiliti, Inc. has a P/E of approximately -69.98, indicating a very attractive valuation, while Sonder Holdings, Inc. is considered risky with an EV to EBITDA of 13.28.
Despite being fairly valued, European Wax Center has underperformed significantly compared to the S&P 500, with a year-to-date return of -37.78% versus the S&P's 12.22%. This stark contrast in performance may suggest that while the stock is fairly valued, market sentiment may be weighing heavily on its price.