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. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 24, which is significantly higher than the peer average of approximately 16.93, while the EV to EBITDA ratio is 9.45, also above the peer average of 7.91. Additionally, the Price to Book Value is 4.57, suggesting a premium over its book value compared to peers.
In comparison to its peers, Agiliti, Inc. has a very attractive valuation with a P/E ratio of -69.98, while Sonder Holdings, Inc. is considered risky with a P/E of -0.09. The recent stock performance shows that European Wax Center, Inc. has underperformed against the S&P 500, with a year-to-date return of -48.58% compared to the S&P 500's 13.30%. This significant underperformance reinforces the notion that the stock may be overvalued at its current price.