Is Mister Car Wash, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Mister Car Wash, Inc. has moved from fair to attractive, indicating a shift towards a more favorable assessment. Despite this positive change, the company appears to be overvalued based on its current metrics, particularly when compared to its peers. The P/E ratio stands at 26, while the industry average is not provided, but peer comparisons show Stride, Inc. with a P/E of 23.77 and Adtalem Global Education, Inc. at 39.20. Additionally, the EV to EBITDA ratio is 10.45, which is higher than Stride, Inc.'s 14.10, suggesting that Mister Car Wash may be priced too high relative to its earnings potential.
The company also shows a ROCE of 10.75% and a ROE of 7.87%, which are relatively modest compared to its peers. Notably, the stock has underperformed against the S&P 500, with a year-to-date return of -29.63% compared to the index's 14.40%, and a one-year return of -38.64% versus 12.65% for the S&P 500. This underperformance reinforces the notion that Mister Car Wash, Inc. is currently overvalued in the market.