Is Portillo's, Inc. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Portillo's, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 26, a Price to Book Value of 2.13, and an EV to EBITDA of 12.70. In comparison, peers such as Bloomin' Brands, Inc. have a significantly lower P/E of 4.10 and Jack in the Box, Inc. has a P/E of 10.02, highlighting a stark contrast in valuation.
Recent performance also underscores this valuation concern, as Portillo's has underperformed against the S&P 500, with a year-to-date return of -32.45% compared to the index's 12.22%. This trend of declining returns over multiple periods reinforces the notion that Portillo's is not only overvalued but also struggling in the current market environment.