Is ARKO Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for ARKO Corp. has moved from fair to very expensive. The company is currently overvalued, as indicated by its high P/E ratio of 242.22, despite being loss-making, and a Price to Book Value of 1.40. Additionally, its EV to EBITDA ratio stands at 5.39, which is significantly higher compared to peers like Village Super Market, Inc., which has a more attractive EV to EBITDA of 4.52.
In terms of performance, ARKO Corp. has seen substantial declines, with a year-to-date return of -39.00%, while the S&P 500 has gained 13.30% in the same period. This stark contrast reinforces the notion that ARKO Corp. is not only overvalued but also underperforming relative to broader market benchmarks.