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 more favorable assessment of its value. The company appears to be undervalued, particularly given its P/E ratio of 11.95, which is lower than the industry average, and an EV to EBITDA ratio of 7.58, suggesting it is trading at a discount relative to its earnings potential. Additionally, the absence of a PEG ratio indicates a lack of growth expectations, further supporting the undervaluation thesis.
In comparison to its peers, Smithfield Foods, Inc. has a P/E ratio of 11.95, while other companies in the FMCG sector may have higher valuations, reinforcing the notion that Smithfield is undervalued. Notably, the company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -65.02% compared to the S&P 500's 13.30%, highlighting the disconnect between market performance and intrinsic value.