Is Flowers Foods, Inc. overvalued or undervalued?

As of 30 July 2025, the valuation grade for Flowers Foods, Inc. has moved from fair to very attractive, indicating a positive shift in its perceived value. The company appears undervalued, especially when considering its P/E ratio of 14, which is significantly lower than peers like The J. M. Smucker Co. at 23.79 and Lamb Weston Holdings, Inc. at 15.03. Additionally, Flowers Foods boasts an EV to EBITDA ratio of 10.49 and a remarkable dividend yield of 535.52%, further supporting its attractive valuation.
In comparison to its peers, Flowers Foods, Inc. has a lower P/E ratio than Conagra Brands, Inc. at 8.91 and Ingredion, Inc. at 12.88, reinforcing its undervalued status within the FMCG sector. Despite the company's recent stock performance, which has lagged behind the S&P 500 with a YTD return of -35.62% versus the index's 12.22%, the current valuation metrics suggest that it may present a compelling investment opportunity.