Is The Simply Good Foods Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for The Simply Good Foods Co. has moved from fair to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 21, which is significantly higher than the peer average of 17.32 for similar companies. Additionally, the EV to EBITDA ratio stands at 13.39, again above the peer average of 11.13, and the PEG ratio is 1.51, suggesting that the stock may not be a bargain relative to its growth expectations.
When compared to peers, Campbell Soup Co. has a P/E of 13.36 and Lamb Weston Holdings, Inc. has a P/E of 15.03, both indicating that The Simply Good Foods Co. is trading at a premium. Furthermore, the company's recent stock performance has been poor, with a year-to-date return of -36.99% compared to the S&P 500's gain of 13.30%, reinforcing the notion that the stock is overvalued in the current market environment.