Is Tootsie Roll Industries, Inc. overvalued or undervalued?

As of 17 October 2025, Tootsie Roll Industries, Inc. has moved from a very expensive to a fair valuation grade. The company is currently fairly valued based on its metrics, with a P/E ratio of 35, a Price to Book Value of 3.42, and an EV to EBITDA of 21.41. In comparison to its peers, Balchem Corp. has a P/E of 36.79 and Lancaster Colony Corp. has a P/E of 27.91, indicating that Tootsie Roll's valuation is competitive within its industry.
Despite recent strong performance, with a year-to-date return of 38.59% compared to the S&P 500's 13.30%, the longer-term returns show Tootsie Roll lagging behind, particularly over three and five years. This suggests that while the stock may be currently fairly valued, its historical performance relative to the broader market could warrant caution for potential investors.