Is Lamb Weston Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Lamb Weston Holdings, Inc. has moved from very expensive to fair. The company appears to be undervalued based on its current valuation 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, which suggest that the stock is trading at a reasonable price compared to its earnings and asset value.
In comparison to peers, Lamb Weston has a P/E ratio of 15.03, which is lower than The J. M. Smucker Co. at 23.79, but higher than Conagra Brands, Inc. at 8.91, indicating a competitive positioning within the industry. Additionally, the company’s return over the past year has been -8.44%, while the S&P 500 has returned 14.08%, highlighting a significant underperformance relative to the broader market. This underperformance, coupled with the fair valuation grade, suggests that there may be potential for recovery as the market reassesses the company's value.