Is O'Reilly Automotive, Inc. overvalued or undervalued?

As of 27 October 2021, the valuation grade for O'Reilly Automotive, Inc. moved from expensive to risky. The company is currently considered overvalued. Key ratios include a P/E ratio of 33, an EV to EBITDA of 22.72, and a PEG ratio of 12.01, which indicate a premium valuation compared to its peers.
In comparison, AutoZone, Inc. has a P/E of 26.87 and an EV to EBITDA of 18.08, while Walmart, Inc. is even higher at a P/E of 35.54. The significant negative price to book value of -57.84 further underscores the valuation concerns. Notably, O'Reilly has outperformed the S&P 500 with a year-to-date return of 15.44% compared to the index's 2.44%, but this does not mitigate the overall overvaluation sentiment.