Is Albertsons Cos., Inc. overvalued or undervalued?

As of 8 September 2025, the valuation grade for Albertsons Cos., Inc. moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 12, which is significantly lower than the peer average of 20.99 for Weis Markets, Inc. and 27.62 for Sprouts Farmers Market, Inc. Additionally, the Price to Book Value stands at 4.40, and the EV to EBITDA ratio is 5.04, both suggesting that the stock may not be justified at its current price level.
In terms of performance, Albertsons has underperformed compared to the S&P 500 across multiple time frames, with a year-to-date return of -6.67% compared to the S&P 500's 12.22%. This trend continues over three years, where Albertsons has returned -33.03% against the S&P 500's 70.41%. Given these factors, Albertsons Cos., Inc. is currently overvalued in the retailing sector.