Is Performance Food Group Co. overvalued or undervalued?

As of 5 February 2025, the valuation grade for Performance Food Group Co. has moved from expensive to very expensive. The company is currently overvalued based on its financial metrics. The P/E ratio stands at 32, significantly higher than the industry average of approximately 30.71, while the EV to EBITDA ratio is 12.36, which also exceeds the peer average of 12.11. Additionally, the PEG ratio is notably high at 11.99, indicating that the stock may be priced for growth that may not materialize.
When comparing Performance Food Group Co. to its peers, Grab Holdings Ltd. has a P/E ratio of 374.34, but is classified as risky, while Lyft, Inc. is deemed fair with a P/E of 62.13. Vontier Corp. is also categorized as very expensive with a P/E of 13.96. The company's recent stock performance shows a 1-year return of 29.10%, outperforming the S&P 500's 10.26% return, but this does not mitigate the overvaluation indicated by its current metrics.