Is Scotts Miracle-Gro Co. overvalued or undervalued?

Sep 20 2025 06:11 PM IST
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As of August 3, 2022, Scotts Miracle-Gro Co. is considered overvalued with a P/E ratio of 31, a negative Price to Book Value of -16.11, and has underperformed the S&P 500, prompting a shift in its valuation grade from expensive to risky.
As of 3 August 2022, the valuation grade for Scotts Miracle-Gro Co. changed from expensive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued, given its P/E ratio of 31, which is significantly higher than peers like CF Industries Holdings, Inc. with a P/E of 8.64 and The Mosaic Co. at 10.28. Additionally, the EV to EBITDA ratio stands at 13.33, further highlighting the premium at which Scotts Miracle-Gro is trading compared to its industry counterparts.

The negative Price to Book Value of -16.11 raises further concerns about the company's valuation metrics. In terms of returns, Scotts Miracle-Gro has underperformed against the S&P 500 across multiple periods, including a 1-year return of -17.88% compared to the S&P 500's 17.14%. This trend reinforces the notion that the stock may be overvalued in the current market environment.
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