Is ARKO Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for ARKO Corp. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company is overvalued, particularly given its current financial metrics. Key ratios include a Price to Book Value of 1.40, an EV to EBIT of 11.62, and an EV to EBITDA of 4.94, which suggest that the company is trading at a premium compared to its earnings potential.
In comparison to its peer, Village Super Market, Inc., which has a more attractive P/E ratio of 9.44 and an EV to EBITDA of 4.52, ARKO Corp. appears to be significantly overvalued. The stark contrast in valuation metrics highlights the disparity between ARKO and its industry peers. Additionally, ARKO Corp. has experienced a substantial decline in stock performance, with a year-to-date return of -39.00% compared to the S&P 500's positive return of 13.30%, reinforcing the notion that the stock is not only overvalued but also underperforming in the market.