Is Tapestry, Inc. overvalued or undervalued?

As of 8 May 2025, Tapestry, Inc. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 14, an EV to EBITDA of 11.25, and a PEG ratio of 0.72, which indicates a relatively favorable growth outlook compared to its price.
In comparison to peers, Tapestry's P/E ratio of 14 is significantly lower than Burlington Stores, Inc. at 32.69, but higher than Gap, Inc. at 9.10, suggesting that while Tapestry is overvalued relative to Gap, it is undervalued compared to Burlington. Notably, Tapestry's ROE stands at an impressive 76.77%, reflecting strong profitability. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 31.26% compared to the index's 2.44%, reinforcing the narrative of its current overvaluation.