Is MGP Ingredients, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for MGP Ingredients, Inc. has moved from attractive to risky, indicating a shift in market perception. The company appears to be overvalued given its P/E ratio of 6, which is below the peer average of 6.85, and a price-to-book value of 0.77, suggesting that the stock may not be priced favorably compared to its assets. Additionally, the EV to EBITDA ratio stands at 5.44, which is relatively low compared to the industry, further reinforcing the notion of overvaluation.
In comparison to its peers, MGP Ingredients, Inc. has a lower P/E ratio than its closest competitor, which may indicate that investors are less optimistic about its future growth prospects. The company's ROCE and ROE are both around 13%, which are respectable figures but do not compensate for the valuation concerns. While specific return data is not available, the absence of a positive return narrative against the S&P 500 suggests that the stock may not be performing well relative to broader market benchmarks, aligning with the overall assessment of being overvalued.