Is Darling Ingredients, Inc. overvalued or undervalued?

As of 24 July 2025, the valuation grade for Darling Ingredients, Inc. moved from very expensive to expensive, indicating a shift towards a less favorable valuation. The company appears to be overvalued based on its current metrics, with a P/E ratio of 29, an EV to EBIT of 28.23, and an EV to EBITDA of 11.01. In comparison, peers such as The J. M. Smucker Co. have a lower P/E of 23.79, while Conagra Brands, Inc. stands out with a very attractive P/E of 8.91.
Despite a recent positive return of 1.66% over the past week compared to the S&P 500's 1.05%, the longer-term performance reveals significant underperformance, with a 3-year return of -55.68% versus the S&P 500's 70.41%. This stark contrast reinforces the conclusion that Darling Ingredients, Inc. is currently overvalued in the market.