Is Conagra Brands, Inc. overvalued or undervalued?

As of 23 May 2025, the valuation grade for Conagra Brands, Inc. has moved from very expensive to very attractive, indicating a significant shift in its perceived value. The company is currently undervalued, with a P/E ratio of 9, which is notably lower than its peers, such as McCormick & Co., Inc. at 24.71 and Lamb Weston Holdings, Inc. at 13.54. Additionally, Conagra's EV to EBITDA stands at 10.63, further emphasizing its attractive valuation compared to the industry.
Key ratios highlight Conagra's financial health, including a Price to Book Value of 1.48 and a Dividend Yield of 5.13%. The company's ROE is also strong at 15.79%, suggesting effective management of equity. Despite recent underperformance relative to the S&P 500, where Conagra has seen a 1-year return of -25.02% compared to the index's 10.26%, the current valuation metrics suggest that it presents a compelling investment opportunity.