Is ARKO Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for ARKO Corp. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is overvalued, particularly highlighted by its P/E ratio, which is not applicable due to losses, and a Price to Book Value of 1.40. Additionally, the EV to EBITDA ratio stands at 4.94, which, while lower than the peer Village Super Market, Inc. at 4.5246, still reflects a high valuation relative to its earnings potential.
In comparison to its peers, ARKO Corp. has a notably high EV to EBIT ratio of 11.62, contrasting sharply with Village Super Market's much lower P/E of 9.4433. Furthermore, ARKO's recent stock performance has been poor, with a year-to-date return of -23.82%, significantly underperforming the S&P 500's 12.22% return in the same period. This combination of high valuation ratios and poor stock performance reinforces the conclusion that ARKO Corp. is overvalued.