Is The Simply Good Foods Co. overvalued or undervalued?

As of 7 July 2025, the valuation grade for The Simply Good Foods Co. has moved from fair to very expensive, indicating a significant shift in its market perception. The company appears overvalued based on its current metrics, with a P/E ratio of 21, which is notably higher than the peer average of 17.32 for similar companies like Campbell Soup Co. and Lamb Weston Holdings, Inc. Additionally, the EV to EBITDA ratio stands at 13.39, again above the peer average, suggesting that investors are paying a premium for earnings relative to its competitors.
In comparison to its peers, The Simply Good Foods Co. shows a PEG ratio of 1.51, which is lower than the 1.93 of Campbell Soup Co., but still reflects a high valuation relative to growth expectations. The company's recent stock performance has been underwhelming, with a year-to-date return of -31.04%, significantly lagging behind the S&P 500's return of 12.22% during the same period. This underperformance reinforces the notion that the stock may be overvalued in the current market environment.