Is The Kraft Heinz Co. overvalued or undervalued?

As of 30 July 2025, the valuation grade for The Kraft Heinz Co. has moved from very expensive to risky, indicating a shift in perception regarding its market value. The company appears to be undervalued, given its low P/E ratio of 6, a price-to-book value of 0.64, and an EV to EBITDA ratio of 8.10, which are significantly below industry averages. In comparison, General Mills, Inc. has a P/E ratio of 15.10, while Tyson Foods, Inc. stands at 23.83, highlighting Kraft Heinz's relative undervaluation among its peers.
Despite the favorable valuation metrics, the company's stock has underperformed against the S&P 500, with a year-to-date return of -15.08% compared to the index's 12.22%. This trend continues over longer periods, with a 1-year return of -25.78% versus 17.14% for the S&P 500, and a 5-year return of -12.31% compared to 96.61% for the index, reinforcing concerns about its market position and growth prospects.