Is Hormel Foods Corp. overvalued or undervalued?

As of 12 August 2025, the valuation grade for Hormel Foods Corp. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is overvalued based on its current metrics, with a P/E ratio of 22, a Price to Book Value of 2.10, and an EV to EBITDA of 15.43. In comparison, Conagra Brands, Inc. presents a more attractive valuation with a P/E of 8.91 and an EV to EBITDA of 9.96.
The stock has underperformed relative to the S&P 500, with a year-to-date return of -20.43% compared to the index's 12.22%, and a three-year return of -45.49% versus 70.41% for the S&P 500. This stark contrast reinforces the notion that Hormel Foods Corp. is currently overvalued in the market.