Is Ingles Markets, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ingles Markets, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company's current P/E ratio stands at 18, while its peers, such as Sprouts Farmers Market, Inc. and Weis Markets, Inc., have P/E ratios of 27.62 and 20.99, respectively, suggesting that Ingles is priced lower than some competitors but still carries a high valuation relative to its performance metrics. Additionally, the EV to EBITDA ratio of 6.51 and a Price to Book Value of 0.72 further reinforce the notion of overvaluation, particularly when compared to its peer average.
Ingles Markets, Inc. appears overvalued given its low ROCE of 4.67% and ROE of 3.94%, which do not justify the current price level. The stock has shown a return of 14.41% over the past year, slightly outperforming the S&P 500's return of 14.08%, but this does not mitigate the concerns regarding its valuation metrics. Overall, the combination of high valuation ratios and relatively low returns suggests that Ingles Markets, Inc. is not a compelling investment at this time.