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 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. exhibit a much lower P/E ratio of 4.10, while Jack in the Box, Inc. has a P/E ratio of 10.02, highlighting the relative expensiveness of Portillo's.
Furthermore, the company's recent stock performance has been significantly underwhelming, with a year-to-date return of -37.23%, compared to a positive return of 13.30% for the S&P 500. This stark contrast reinforces the notion that Portillo's is not only overvalued but also struggling in the current market environment.