Is Campbell Soup Co. overvalued or undervalued?

As of 12 February 2025, Campbell Soup Co. has moved from a fair valuation to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a P/E ratio of 13, which is higher than the industry average of approximately 12.32. Additionally, the EV to EBITDA ratio stands at 9.55, compared to its peer average of 9.09, and the PEG ratio is notably high at 3.26, suggesting that the stock may not be justified by its growth prospects.
In comparison to its peers, such as General Mills with a P/E of 14 and Kraft Heinz with a P/E of 12.5, Campbell Soup Co. appears to be trading at a premium. The company's recent performance has also lagged behind the S&P 500, with a year-to-date return of -23.57% compared to the index's 2.44%. This combination of high valuation ratios and poor stock performance reinforces the conclusion that Campbell Soup Co. is currently overvalued.