Is The Kraft Heinz Co. overvalued or undervalued?

As of 17 June 2025, the valuation grade for The Kraft Heinz Co. has moved from very expensive to very attractive, indicating a significant shift in its market perception. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 6, a price-to-book value of 0.64, and an EV to EBITDA ratio of 8.10, all of which suggest that the stock is trading at a discount compared to its intrinsic value.
In comparison to its peers, The Kraft Heinz Co. stands out with a much lower P/E ratio of 5.40, while General Mills, Inc. and Tyson Foods, Inc. have P/E ratios of 14.77 and 23.77, respectively, indicating that Kraft Heinz is significantly undervalued relative to these competitors. Additionally, the company's PEG ratio of 0.08 further reinforces this undervaluation narrative. Despite recent underperformance against the S&P 500, with a year-to-date return of -15.60% compared to the index's 2.44%, the current valuation metrics suggest that The Kraft Heinz Co. presents a compelling investment opportunity.