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, with a P/E ratio of 26, significantly higher than peers like Bloomin' Brands, Inc. at 4.10 and Jack in the Box, Inc. at 10.02. Additionally, Portillo's has an EV to EBITDA of 12.70, which is also elevated compared to the industry standards.
In terms of performance, Portillo's has underperformed the S&P 500 across multiple time frames, with a year-to-date return of -37.23% compared to the S&P 500's 13.30%. This stark contrast reinforces the notion that the stock may be overvalued given its poor performance relative to the broader market.