Is Savers Value Village, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Savers Value Village, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company appears overvalued, particularly with a P/E ratio of 72, which is substantially higher than its peers, such as Dick's Sporting Goods, Inc. with a P/E of 30.66 and AutoNation, Inc. at 18.02. Additionally, the Price to Book Value stands at 3.93, and the EV to EBITDA ratio is 11.91, both suggesting that the stock is trading at a premium compared to its industry counterparts.
In terms of performance, Savers Value Village has outperformed the S&P 500 with a year-to-date return of 25.85% compared to the index's 12.22%, and a one-year return of 24.64% against 17.14% for the S&P 500. However, despite these strong returns, the elevated valuation ratios indicate that the stock may not be a sustainable investment at current levels.