Is Campbell Soup Co. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Campbell Soup Co. has moved from expensive to very expensive, indicating a significant shift in its perceived value. Based on the current metrics, the company appears overvalued. The P/E ratio stands at 13, while the industry average is not provided, suggesting that the valuation may not be justified. Additionally, the EV to EBITDA ratio of 9.55 and a PEG ratio of 3.26 further reinforce this overvaluation perspective.
In comparison to its peers, Campbell Soup Co. has a P/E ratio of 13.36, while The Simply Good Foods Co. has a P/E of 17.32, and The Vita Coco Co., Inc. is at 39.22, highlighting that Campbell is relatively lower but still categorized as very expensive. Notably, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -19.84% compared to the index's 12.22%, and a 5-year return of -26.12% versus 96.61% for the S&P 500, suggesting that investors may be cautious about its future prospects.