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 significant shift in its perceived value. The company is currently overvalued, with a P/E ratio of 21, which is notably higher than its peers such as Campbell Soup Co. at 13.36 and Lamb Weston Holdings, Inc. at 15.03. Additionally, the EV to EBITDA ratio stands at 13.39, again above the industry average, while the PEG ratio is 1.51, suggesting that the stock may not be justified at its current price given its growth prospects.
In terms of performance, The Simply Good Foods Co. has underperformed relative to the S&P 500, with a year-to-date return of -36.99% compared to the index's 13.30%. Over the past three years, the company's return of -26.36% starkly contrasts with the S&P 500's impressive 81.19% return, reinforcing the notion that the stock is overvalued in light of its recent performance and valuation metrics.