Is Tapestry, Inc. overvalued or undervalued?

As of 14 August 2025, Tapestry, Inc. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, as indicated by its P/E ratio of 14, which is significantly lower than the peer average of 16.52 for Tapestry and 39.78 for Burlington Stores, Inc. Additionally, Tapestry's EV to EBITDA ratio stands at 11.25, while its PEG ratio is notably low at 0.72, suggesting that despite high growth expectations, the current price may not be justified.
In comparison to its peers, Tapestry's valuation metrics appear less favorable, particularly when considering Burlington Stores, which has a much higher P/E and EV to EBITDA ratio. The company's recent stock performance has been strong, with a 1-year return of 162.69% compared to the S&P 500's 17.14%, reinforcing the notion that while the stock has performed well, its current valuation may not be sustainable.