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 is currently overvalued, as evidenced by its P/E ratio of 13, which is lower than its peer BellRing Brands, Inc. at 15.96, and its EV to EBITDA ratio of 8.82, which is also less favorable compared to the same peer's 11.76. Additionally, the PEG ratio stands at 2.16, suggesting that the stock may not be justified at its current price given its growth prospects.
In comparison to its peers, Central Garden & Pet Co. shows a less favorable valuation profile, with its EV to Sales ratio of 0.88 being lower than the industry average. The company's recent stock performance has been underwhelming, with a year-to-date return of -21.26% compared to the S&P 500's positive return of 13.30%, further reinforcing the notion that the stock is overvalued.