Is Bunge Ltd. overvalued or undervalued?

As of 10 June 2025, Bunge Ltd. has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 9, which is higher than the peer Pilgrim's Pride Corp. with a P/E of 8.31, indicating that Bunge is trading at a premium compared to its competitor. Additionally, the EV to EBITDA ratio for Bunge is 7.08, while Pilgrim's Pride shows a more favorable ratio of 5.49, further supporting the overvaluation assessment.
Bunge's Price to Book Value is 0.94, and the ROE is reported at 10.20%. Despite a strong return on capital employed (ROCE) of 10.04%, these ratios suggest that the company is not delivering sufficient value relative to its price. Furthermore, Bunge's recent stock performance has underperformed the S&P 500 over the past year, with a return of -20.52% compared to the index's 10.26%, reinforcing the notion that the stock may be overvalued in the current market environment.