Is The J. M. Smucker Co. overvalued or undervalued?

As of 27 February 2025, the valuation grade for The J. M. Smucker Co. has moved from attractive to risky, indicating a shift in perceived value. The company appears to be overvalued, with a P/E ratio of 23, significantly higher than peers such as Conagra Brands, Inc. at 8.91 and Ingredion, Inc. at 12.88. Additionally, the EV to EBITDA ratio stands at 11.27, which is also higher than many competitors, suggesting that the market may be pricing in growth that is not currently supported by the company's performance metrics.
The PEG ratio is notably low at 0.01, which typically indicates a potential undervaluation relative to growth, but in this context, it may reflect skepticism about future earnings growth. The company has underperformed against the S&P 500 across multiple time frames, with a one-year return of -11.45% compared to the S&P's 17.14%, further reinforcing the notion that the stock is currently overvalued.