Is National Vision Holdings, Inc. overvalued or undervalued?

As of 9 November 2023, the valuation grade for National Vision Holdings, Inc. has moved from very expensive to risky. The company is currently considered overvalued. Key ratios include a P/E ratio of 122, an EV to EBITDA of 65.78, and a PEG ratio of 2.23, all of which suggest that the stock is priced significantly higher than its earnings growth potential.
In comparison to its peers, National Vision's P/E ratio of 122 is notably higher than Rush Enterprises, Inc. at 13.16 and PriceSmart, Inc. at 23.21, both of which are classified as fairly valued. Additionally, the company's ROCE of 2.60% and ROE of 1.65% indicate weak returns relative to its equity and capital employed. Despite a strong year-to-date return of 117.75% compared to the S&P 500's 2.44%, the high valuation metrics suggest that National Vision Holdings, Inc. may not sustain this performance in the long run.