Is Savers Value Village, Inc. overvalued or undervalued?

As of 20 February 2025, the valuation grade for Savers Value Village, Inc. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued, particularly when compared to its peers. Key ratios reveal a P/E ratio of 72, significantly higher than the industry average, and an EV to EBITDA of 11.91, which also suggests a premium valuation.
In comparison to peers, RH has a P/E of 28.41 and an EV to EBITDA of 12.30, while Academy Sports & Outdoors, Inc. shows a more attractive P/E of 7.69 and an EV to EBITDA of 5.32. These comparisons highlight Savers Value Village's elevated valuation relative to its industry counterparts. Additionally, the company's recent stock performance has outpaced the S&P 500 over the past week and month, but its one-year return of -11.89% starkly contrasts with the S&P 500's 10.26% gain, further emphasizing the overvaluation concern.