Is Tractor Supply Co. overvalued or undervalued?

As of 24 April 2025, Tractor Supply Co. has moved from a very attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 28, which is slightly below the peer average of approximately 27.91 for similar companies. Additionally, the EV to EBITDA ratio is 16.93, again close to the peer average, while the ROE is notably high at 48.35%, indicating strong profitability relative to equity.
When comparing Tractor Supply Co. to its peers, Walmart has a much higher P/E of 35.54, while Costco's P/E is even higher at 55.28, highlighting that Tractor Supply Co. is relatively more attractively priced among its competitors. The company's recent stock performance has shown a 1-week return of 3.81%, outperforming the S&P 500's slight decline, which reinforces the notion that the stock is holding its ground in a challenging market environment. Overall, while the valuation has moderated, Tractor Supply Co. remains fairly valued in the current market context.