Is Ingles Markets, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Ingles Markets, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 18, an EV to EBITDA of 6.51, and a Price to Book Value of 0.72, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Ingles Markets, Inc. has a P/E ratio of 18.27, while Natural Grocers by Vitamin Cottage, Inc. has a higher P/E of 21.91, and Village Super Market, Inc. stands out with a much lower P/E of 9.35, indicating a more attractive valuation. The company's recent stock performance has lagged behind the S&P 500, particularly over the past year, where it has returned -8.61% compared to the S&P 500's 10.26%. This underperformance further supports the view that Ingles Markets, Inc. is currently overvalued.