Is Fresh Del Monte Produce, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Fresh Del Monte Produce, Inc. moved from very expensive to expensive, indicating a slight improvement but still suggesting overvaluation. The company appears to be overvalued based on its P/E ratio of 10, which is higher than peers like Pilgrim's Pride Corp. at 8.20 and Cal-Maine Foods, Inc. at 6.80. Additionally, the EV to EBITDA ratio stands at 7.25, while its PEG ratio is notably low at 0.41, suggesting that the stock may not be justified at its current price.
In comparison to the S&P 500, Fresh Del Monte has underperformed over the longer term, with a 3-year return of 26.92% versus the S&P 500's 67.17%, and a 5-year return of 35.58% compared to 85.61%. This underperformance reinforces the view that the stock is overvalued relative to its growth potential and peers in the agricultural sector.