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 towards a less favorable valuation outlook. The company is currently considered overvalued based on its valuation ratios, which include a P/E ratio of 28, a Price to Book Value of 13.48, and an EV to EBITDA of 16.93. In comparison, peers such as Target Corp. have a P/E of 11.82, and Williams-Sonoma, Inc. has a P/E of 21.73, highlighting the relative expense of Tractor Supply Co. within its industry.
While Tractor Supply Co. has shown strong returns over the long term, with a 5-year return of 80.29%, it has underperformed against the S&P 500 in the past year, returning -7.48% compared to the S&P's 14.08%. This discrepancy reinforces the notion that the stock may be overvalued given its current price levels and the performance of its peers.