Is Ingles Markets, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Ingles Markets, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is overvalued based on its current financial metrics. 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 peers.
Ingles Markets, Inc. is compared to peers such as Sprouts Farmers Market, Inc., which has a P/E of 27.62, and Weis Markets, Inc., with a P/E of 20.99, highlighting that Ingles is underperforming in terms of valuation relative to its competition. Additionally, while the company has shown a 1-month return of 7.87%, it has lagged behind the S&P 500's 2.33% return over the same period, further reinforcing the notion that the stock may not be a favorable investment at its current price.