Is MGP Ingredients, Inc. overvalued or undervalued?

As of 12 June 2025, the valuation grade for MGP Ingredients, Inc. has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a P/E ratio of 6, an EV to EBITDA of 5.44, and a Price to Book Value of 0.77, which are notably low compared to its peers. For instance, Cal-Maine Foods, Inc. has a P/E of 8.11 and an EV to EBITDA of 5.09, while Seaboard Corp. is categorized as very expensive with a P/E of 19.13.
Despite these low ratios, the overall market sentiment suggests that MGP Ingredients, Inc. is not aligned with its valuation compared to its peers, reinforcing the conclusion of being overvalued. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -25.15% versus the index's 2.44%, further highlighting the disconnect in its current valuation.