Is AMCON Distributing Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for AMCON Distributing Co. has moved from attractive to fair. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 42, significantly higher than the peer average of 24.38 for comparable companies like Hudson Technologies, Inc. and Cricut, Inc., which have P/E ratios of 24.38 and 18.02, respectively. Additionally, the EV to EBITDA ratio is 10.88, while the industry average is considerably lower, suggesting a premium valuation.
Despite a high dividend yield of 48.18%, the company's return on equity (ROE) is only 2.25%, indicating inefficiency in generating profits from shareholders' equity. The recent stock performance shows that AMCON has underperformed compared to the S&P 500 over the year, with a return of -15.21% versus the S&P 500's 14.08%. This underperformance reinforces the notion that AMCON may be overvalued in the current market context.