Is Lamb Weston Holdings, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Lamb Weston Holdings, Inc. has moved from expensive to fair. The company is currently fairly valued based on its metrics. Key ratios include a P/E ratio of 14, an EV to EBITDA of 9.46, and a Price to Book Value of 4.91. In comparison to peers, The J. M. Smucker Co. has a higher P/E ratio of 23.79, while Conagra Brands, Inc. shows a more attractive P/E of 8.91.
Despite being fairly valued, Lamb Weston has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -15.50% compared to the index's 12.22%. This underperformance over the past year and beyond suggests that while the stock may be fairly valued, market sentiment may be weighing heavily on its price.