Is Tractor Supply Co. overvalued or undervalued?

As of 21 August 2025, Tractor Supply Co. has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 28, a Price to Book Value of 13.48, and an EV to EBITDA of 22.32, all of which exceed those of its peers, such as Target Corp. with a P/E of 11.82 and Williams-Sonoma, Inc. with an EV to EBITDA of 14.11.
In terms of recent performance, Tractor Supply Co. has underperformed compared to the S&P 500 over the past year, returning 8.66% versus the index's 17.14%. However, it has shown strong returns over the longer term, with a 5-year return of 116.75%, which is better than the S&P 500's 96.61%. This mixed performance further supports the conclusion that the stock is currently overvalued.