Is Suburban Propane Partners LP overvalued or undervalued?

As of 4 August 2016, the valuation grade for Suburban Propane Partners LP moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, supported by a P/E ratio of 12, which is lower than its peer UGI Corp. at 11.86, and an EV to EBITDA ratio of 9.08, compared to Sunoco LP's higher 11.19. Additionally, the company's ROCE stands at 10.46%, while its ROE is 14.91%, suggesting efficient capital utilization and strong profitability.
In terms of peer comparison, Suburban Propane Partners LP's valuation metrics are competitive, with a P/E ratio lower than both UGI Corp. and Boise Cascade Co. (14.29). Despite its attractive valuation, the stock has underperformed relative to the S&P 500 over longer periods, with a 3-year return of 13.18% compared to the S&P 500's 70.41%, and a 5-year return of 34.07% against 96.61%. This discrepancy highlights the potential for price appreciation as the market recognizes its value.