Is Smithfield Foods, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Smithfield Foods, Inc. moved from fair to attractive, indicating a shift in perception towards its value. The company appears undervalued, particularly when considering its P/E ratio of 11.95, which is competitive relative to its industry peers. Additionally, the EV to EBITDA ratio stands at 7.58, suggesting that the company may be trading at a discount compared to its earnings potential.
In comparison to its peers, Smithfield Foods, Inc. has a lower P/E ratio than the industry average, which typically indicates a more attractive investment opportunity. Notably, the company has experienced significant declines in stock performance, with a year-to-date return of -65.02% compared to the S&P 500's 13.30%, highlighting a stark contrast in performance that may further support its undervaluation narrative.