Is Casey's General Stores, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Casey's General Stores, Inc. has moved from very attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 31, a Price to Book Value of 4.82, and an EV to EBITDA ratio of 16.15, all of which are higher than several peers. For instance, Target Corp. has a significantly lower P/E ratio of 11.82, while Tractor Supply Co. is at 32.73, suggesting that Casey's valuation is not justified compared to its competitors.
Despite its overvaluation, Casey's has delivered strong returns, outperforming the S&P 500 with a year-to-date return of 43.11% compared to the index's 13.30%. However, over a 10-year period, the stock's return of 206.94% lags behind the S&P 500's 227.77%, reinforcing the notion that while the company has performed well recently, its current valuation may not be sustainable in the long term.