Is European Wax Center, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for European Wax Center, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 24, a Price to Book Value of 4.57, and an EV to EBITDA of 9.45. In comparison, its peer Agiliti, Inc. has a significantly lower P/E ratio of approximately -69.98, while Sonder Holdings, Inc. shows an EV to EBITDA of 13.28, reinforcing the notion that European Wax Center, Inc. is not competitively priced within its industry.
The company's recent stock performance has been notably poor, with a year-to-date return of -48.58% compared to a positive return of 13.30% for the S&P 500, and a staggering decline of -77.84% over three years against the S&P's 81.19% gain. This stark contrast further emphasizes the overvaluation of European Wax Center, Inc. in the current market landscape.