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, indicating a shift in its perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 42, which is significantly higher than its peers like Hudson Technologies, Inc. with a P/E of 24.38 and Cricut, Inc. at 18.02. Additionally, the EV to EBITDA ratio stands at 10.88, while the industry average is much lower, further supporting the overvaluation stance.
In comparison to its peers, AMCON's Price to Book Value of 0.93 is relatively favorable, yet the overall valuation metrics suggest caution. The company has underperformed against the S&P 500 in the year-to-date and one-year periods, with returns of -7.38% and -15.21%, respectively, compared to the S&P 500's returns of 13.30% and 14.08%. This performance reinforces the notion that AMCON Distributing Co. is currently overvalued in the market.