Is Smithfield Foods, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Smithfield Foods, Inc. moved from attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 11.95, which is higher than the industry average, and an EV to EBITDA ratio of 7.58, suggesting that it may not be a compelling investment at this price point. Additionally, the absence of a PEG ratio and a dividend yield further highlights potential concerns regarding its growth prospects and return on investment.
In comparison to peers, Smithfield Foods, Inc. has a P/E ratio that positions it unfavorably against competitors like Tyson Foods, which has a P/E of 9.50, and Hormel Foods with a P/E of 15.00. The recent stock performance has been significantly underwhelming, with a year-to-date return of -66.65% compared to the S&P 500's positive return of 11.41%, reinforcing the notion that the stock may be overvalued in the current market environment.