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 market perception. 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, all of which exceed the industry norms. In comparison, a peer such as Floor & Decor Holdings, Inc. has a higher P/E ratio of 44.72, suggesting that the market is pricing it even more aggressively than Floor & Decor itself.
The stock has underperformed against the S&P 500, with a year-to-date return of -28.48% compared to the index's 13.30%, and a one-year return of -34.20% versus 14.08% for the S&P 500. This stark contrast reinforces the notion that Floor & Decor is currently overvalued in the market.