Is Krispy Kreme, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Krispy Kreme, Inc. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.45, an EV to EBITDA ratio of 13.64, and an EV to Sales ratio of 0.90. In comparison, peers such as The Duckhorn Portfolio, Inc. have a significantly higher P/E ratio of 21.99, while G. Willi Food International Ltd. shows a more attractive EV to EBITDA of 10.07.
The stock has underperformed relative to the S&P 500, with a year-to-date return of -63.34% compared to the index's 12.22%. This stark contrast reinforces the notion that Krispy Kreme, Inc. is currently overvalued in the market.