Is AMCON Distributing Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for AMCON Distributing Co. 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, such as Hudson Technologies, Inc. with a P/E of 24.38, and Cricut, Inc. at 18.02. Additionally, AMCON's EV to EBITDA ratio stands at 10.88, while its industry peers exhibit lower ratios, further supporting the overvaluation thesis.
In comparison to the S&P 500, AMCON has underperformed in the longer term, with a 3-year return of -37.14% versus the S&P 500's 81.19%, and a 1-year return of -15.21% compared to 14.08% for the index. This performance, alongside a Price to Book Value of 0.93 and a Dividend Yield of 48.18%, suggests that while the company offers a high yield, its overall valuation metrics do not justify its current price level.