Is Central Garden & Pet Co. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Central Garden & Pet Co. moved from expensive to very expensive, indicating a significant deterioration in its valuation appeal. The company is overvalued, with a P/E ratio of 13, an EV to EBITDA of 8.82, and a PEG ratio of 2.16, all suggesting that the stock is priced higher than its earnings growth can justify. In comparison, BellRing Brands, Inc. has a higher P/E of 15.96 and a PEG of 0.53, while Tootsie Roll Industries, Inc. shows a much higher P/E of 40.13, reinforcing the notion that Central Garden & Pet Co. is not competitively priced within its peer group.
Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -7.37% compared to the S&P 500's 12.22%, and a one-year return of -6.24% against the S&P 500's 17.14%. These figures further underscore the overvaluation narrative, as the company's stock has lagged significantly behind broader market performance.