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

As of 17 October 2025, the valuation grade for Floor & Decor Holdings, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a P/E ratio of 38, which is notably higher than its peer, which has a P/E of 44.72. Additionally, the EV to EBITDA ratio stands at 14.62, further suggesting that the company's valuation metrics are elevated compared to industry standards.
In comparison to its peers, Floor & Decor's valuation ratios highlight its expensive standing; for instance, while it has an EV to EBIT of 26.05, its peer shows a more favorable EV to EBITDA of 17.72. The company's recent performance has also been underwhelming, with a year-to-date return of -28.48%, significantly lagging behind the S&P 500's return of 13.30% during the same period. This underperformance reinforces the notion that the stock may not justify its current valuation.