Is BBB Foods, Inc. overvalued or undervalued?

As of 11 August 2025, the valuation grade for BBB Foods, Inc. has moved from very expensive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued, given its high P/E ratio of 203 compared to its peer average P/E of 166.66, and an EV to EBITDA ratio of 51.51, which is significantly higher than the peer average of 19.34. Additionally, the Price to Book Value stands at 18.18, further supporting the notion of overvaluation.
In comparison to its peers in the retailing industry, BBB Foods, Inc. shows notable discrepancies in key ratios, such as a much higher P/E and EV to EBITDA, suggesting that it is trading at a premium relative to its competitors. Recent stock performance also reinforces this valuation concern, as BBB Foods, Inc. has underperformed the S&P 500 with a year-to-date return of -8.52% compared to the S&P 500's 12.22%.