Is Tractor Supply Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Tractor Supply Co. has moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 28, which is significantly higher than the peer average of 21.73 for Williams-Sonoma, Inc. and 11.82 for Target Corp. Additionally, Tractor Supply Co. has a Price to Book Value of 13.48 and an EV to EBITDA of 22.32, both of which suggest a premium valuation compared to its peers.
In comparison to its industry, Tractor Supply Co.'s valuation ratios are elevated, with its P/E ratio notably outpacing that of its competitors. The company's recent stock performance has been mixed, with a year-to-date return of 4.03%, significantly lagging behind the S&P 500's return of 13.30% over the same period, and a one-year return of -7.48% compared to the S&P 500's 14.08%. This underperformance reinforces the notion that Tractor Supply Co. is currently overvalued in the market.