Is Cal-Maine Foods, Inc. overvalued or undervalued?

As of 8 April 2025, Cal-Maine Foods, Inc. has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a P/E ratio of 8, significantly lower than its peer Seaboard Corp., which has a P/E of 19.13. Additionally, Cal-Maine's PEG ratio stands at an impressive 0.03, indicating strong growth potential relative to its price, while its dividend yield is exceptionally high at 207.87%.
In comparison to its peers, Cal-Maine's EV to EBITDA ratio of 4.94 is more favorable than Seaboard Corp.'s 5.33, while MGP Ingredients, Inc. has a P/E of 6.17, reflecting a fair valuation. The company's return on equity (ROE) is notably high at 41.39%, further supporting its undervaluation narrative. Over the past year, Cal-Maine has outperformed the S&P 500 with a return of 74.27% compared to the index's 10.26%, reinforcing its attractive valuation.