Is Central Garden & Pet Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Central Garden & Pet Co. moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics, with a P/E ratio of 13, an EV to EBITDA of 8.82, and a PEG ratio of 2.16, which suggests that the stock is priced high relative to its earnings growth potential.
In comparison to its peers, Central Garden & Pet Co. has a lower P/E ratio than BellRing Brands, Inc. at 15.96, but its valuation remains elevated against the industry backdrop. The stock has underperformed relative to the S&P 500 across multiple time frames, with a year-to-date return of -21.26% compared to the index's 13.30%, reinforcing the notion that the stock may not be a favorable investment at its current price.