Is Lancaster Colony Corp. overvalued or undervalued?

As of 21 August 2025, the valuation grade for Lancaster Colony Corp. has moved from very attractive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 25, an EV to EBITDA of 15.81, and a PEG ratio of 1.89. In comparison to peers, The J. M. Smucker Co. has a P/E of 23.79, while Conagra Brands, Inc. stands out with a very attractive P/E of 8.91, indicating that Lancaster is relatively more expensive than some competitors.
In terms of recent performance, Lancaster Colony Corp. has underperformed against the S&P 500, with a year-to-date return of 4.61% compared to the index's 12.22%. Over the longer term, the company's 3-year return of 7.80% is significantly lower than the S&P 500's 70.41%, suggesting that while the stock is fairly valued, it may not be the best choice for growth compared to broader market opportunities.