Is Portillo's, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Portillo's, Inc. has moved from very attractive to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its P/E ratio of 26, which is significantly higher than its peers, such as Bloomin' Brands, Inc. with a P/E of 4.10 and Jack in the Box, Inc. at 10.02. Additionally, the EV to EBITDA ratio stands at 12.70, again above the industry average, while the Price to Book Value is 2.13, suggesting that the stock may not be justified at its current price.
In terms of returns, Portillo's has underperformed compared to the S&P 500, with a year-to-date return of -37.23% versus the S&P's 13.30%, and a one-year return of -52.61% compared to the S&P's 14.08%. This stark contrast in performance further reinforces the notion that Portillo's is overvalued in the current market environment.