Is Floor & Decor Holdings, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Floor & Decor Holdings, Inc. moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently overvalued, with a P/E ratio of 38, a Price to Book Value of 3.46, and an EV to EBITDA of 14.62. In comparison, a peer company has a much higher P/E ratio of 44.72, suggesting that Floor & Decor may be less attractive relative to its peers despite its elevated valuation metrics.
The stock has underperformed against the S&P 500 in multiple periods, notably with a year-to-date return of -12.63% compared to the S&P 500's 12.22%, and a one-year return of -25.86% against the S&P 500's 17.14%. This performance reinforces the notion that the stock is overvalued, as it struggles to keep pace with broader market returns.