CHWY Relative Valuation
CHWY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CHWY is overvalued; if below, it's undervalued.
Historical Valuation
Chewy Inc (CHWY) is now in the Fair zone, suggesting that its current forward PS ratio of 1.04 is considered Fairly compared with the five-year average of 47.74. The fair price of Chewy Inc (CHWY) is between 30.99 to 83.13 according to relative valuation methord.
Relative Value
Fair Zone
30.99-83.13
Current Price:32.00
Fair
22.50
PE
1Y
3Y
5Y
16.35
EV/EBITDA
Chewy Inc. (CHWY) has a current EV/EBITDA of 16.35. The 5-year average EV/EBITDA is 82.36. The thresholds are as follows: Strongly Undervalued below -115.65, Undervalued between -115.65 and -16.65, Fairly Valued between 181.36 and -16.65, Overvalued between 181.36 and 280.37, and Strongly Overvalued above 280.37. The current Forward EV/EBITDA of 16.35 falls within the Historic Trend Line -Fairly Valued range.
36.11
EV/EBIT
Chewy Inc. (CHWY) has a current EV/EBIT of 36.11. The 5-year average EV/EBIT is -586.03. The thresholds are as follows: Strongly Undervalued below -3321.37, Undervalued between -3321.37 and -1953.70, Fairly Valued between 781.64 and -1953.70, Overvalued between 781.64 and 2149.30, and Strongly Overvalued above 2149.30. The current Forward EV/EBIT of 36.11 falls within the Historic Trend Line -Fairly Valued range.
1.04
PS
Chewy Inc. (CHWY) has a current PS of 1.04. The 5-year average PS is 1.67. The thresholds are as follows: Strongly Undervalued below -0.45, Undervalued between -0.45 and 0.61, Fairly Valued between 2.73 and 0.61, Overvalued between 2.73 and 3.79, and Strongly Overvalued above 3.79. The current Forward PS of 1.04 falls within the Historic Trend Line -Fairly Valued range.
17.22
P/OCF
Chewy Inc. (CHWY) has a current P/OCF of 17.22. The 5-year average P/OCF is 47.01. The thresholds are as follows: Strongly Undervalued below -32.74, Undervalued between -32.74 and 7.14, Fairly Valued between 86.89 and 7.14, Overvalued between 86.89 and 126.77, and Strongly Overvalued above 126.77. The current Forward P/OCF of 17.22 falls within the Historic Trend Line -Fairly Valued range.
23.08
P/FCF
Chewy Inc. (CHWY) has a current P/FCF of 23.08. The 5-year average P/FCF is 136.71. The thresholds are as follows: Strongly Undervalued below -293.61, Undervalued between -293.61 and -78.45, Fairly Valued between 351.88 and -78.45, Overvalued between 351.88 and 567.04, and Strongly Overvalued above 567.04. The current Forward P/FCF of 23.08 falls within the Historic Trend Line -Fairly Valued range.
Chewy Inc (CHWY) has a current Price-to-Book (P/B) ratio of 29.58. Compared to its 3-year average P/B ratio of 42.88 , the current P/B ratio is approximately -31.01% higher. Relative to its 5-year average P/B ratio of -785.43, the current P/B ratio is about -103.77% higher. Chewy Inc (CHWY) has a Forward Free Cash Flow (FCF) yield of approximately 3.50%. Compared to its 3-year average FCF yield of 2.74%, the current FCF yield is approximately 27.98% lower. Relative to its 5-year average FCF yield of 1.64% , the current FCF yield is about 113.19% lower.
29.58
P/B
Median3y
42.88
Median5y
-785.43
3.50
FCF Yield
Median3y
2.74
Median5y
1.64
Competitors Valuation Multiple
The average P/S ratio for CHWY's competitors is 2.25, providing a benchmark for relative valuation. Chewy Inc Corp (CHWY) exhibits a P/S ratio of 1.04, which is -53.75% above the industry average. Given its robust revenue growth of 8.30%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CHWY decreased by 17.91% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 0.14 to 1.90.
The secondary factor is the Revenue Growth, contributed 8.30%to the performance.
Overall, the performance of CHWY in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is Chewy Inc (CHWY) currently overvalued or undervalued?
Chewy Inc (CHWY) is now in the Fair zone, suggesting that its current forward PS ratio of 1.04 is considered Fairly compared with the five-year average of 47.74. The fair price of Chewy Inc (CHWY) is between 30.99 to 83.13 according to relative valuation methord.
What is Chewy Inc (CHWY) fair value?
CHWY's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Chewy Inc (CHWY) is between 30.99 to 83.13 according to relative valuation methord.
How does CHWY's valuation metrics compare to the industry average?
The average P/S ratio for CHWY's competitors is 2.25, providing a benchmark for relative valuation. Chewy Inc Corp (CHWY) exhibits a P/S ratio of 1.04, which is -53.75% above the industry average. Given its robust revenue growth of 8.30%, this premium appears unsustainable.
What is the current P/B ratio for Chewy Inc (CHWY) as of Jan 08 2026?
As of Jan 08 2026, Chewy Inc (CHWY) has a P/B ratio of 29.58. This indicates that the market values CHWY at 29.58 times its book value.
What is the current FCF Yield for Chewy Inc (CHWY) as of Jan 08 2026?
As of Jan 08 2026, Chewy Inc (CHWY) has a FCF Yield of 3.50%. This means that for every dollar of Chewy Inc’s market capitalization, the company generates 3.50 cents in free cash flow.
What is the current Forward P/E ratio for Chewy Inc (CHWY) as of Jan 08 2026?
As of Jan 08 2026, Chewy Inc (CHWY) has a Forward P/E ratio of 22.50. This means the market is willing to pay $22.50 for every dollar of Chewy Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Chewy Inc (CHWY) as of Jan 08 2026?
As of Jan 08 2026, Chewy Inc (CHWY) has a Forward P/S ratio of 1.04. This means the market is valuing CHWY at $1.04 for every dollar of expected revenue over the next 12 months.