Is BBB Foods, Inc. overvalued or undervalued?

As of 7 May 2025, BBB Foods, Inc. has moved from an attractive to a very expensive valuation grade, indicating a significant shift in its market perception. The company is currently overvalued, with a P/E ratio of 203, which is substantially higher than the industry average of 165.2. Additionally, its Price to Book Value stands at 18.18, and the EV to EBITDA ratio is 23.43, both of which suggest that the stock is priced well above its intrinsic value.
In comparison to its peers, BBB Foods, Inc. shows a stark contrast, as its P/E ratio is significantly higher than the peer average of 18.88. The company's ROCE is notably high at 102.62%, but this does not sufficiently justify the elevated valuation metrics. Over the past year, BBB Foods has outperformed the S&P 500 with a return of 15.34% compared to 10.26%, but the current valuation suggests that investors may be overly optimistic about future growth prospects.