Is Sysco Corp. overvalued or undervalued?

As of 21 April 2025, Sysco Corp. has moved from a valuation grade of very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its financial ratios, including a P/E ratio of 26, a Price to Book Value of 28.59, and an EV to EBITDA of 13.32. In comparison, its peer Uber Technologies, Inc. has a significantly lower P/E ratio of 16.59 and a higher EV to EBITDA of 34.26, highlighting the disparity in valuation between these companies.
Despite Sysco's strong return on equity (ROE) of 110.53% and return on capital employed (ROCE) of 24.44%, these figures do not sufficiently justify its high valuation metrics. Additionally, the company's recent stock performance shows a 1-week return of 1.55%, outperforming the S&P 500's -0.13%, but its year-to-date return of -0.72% lags behind the index's 2.44%. Overall, Sysco Corp. appears to be overvalued relative to its peers and the broader market context.