Is Mister Car Wash, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Mister Car Wash, Inc. moved from very attractive to attractive, indicating a shift in perception regarding its value. The company appears to be overvalued, given its P/E ratio of 26, which is significantly higher than the peer average of 20.37 for comparable companies. Additionally, the EV to EBITDA ratio stands at 10.45, while peers like Stride, Inc. and Adtalem Global Education, Inc. show ratios of 14.10 and 22.36, respectively, suggesting that Mister Car Wash is priced at a premium relative to its earnings potential.
In terms of profitability, Mister Car Wash has a ROCE of 10.75% and a ROE of 7.87%, which are lower than some peers, indicating less efficient capital utilization. The stock has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -34.29% compared to the index's 13.30%, reinforcing the notion that the stock may be overvalued in the current market environment.