Is TreeHouse Foods, Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for TreeHouse Foods, Inc. has moved from expensive to attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued, supported by a P/E ratio of 10, a price-to-book value of 0.79, and an EV to EBITDA ratio of 7.27. These metrics suggest that TreeHouse Foods is trading at a discount compared to its earnings and asset values.
In comparison to its peers, TreeHouse Foods has a lower P/E ratio than Balchem Corp. at 37.98 and Lancaster Colony Corp. at 25.39, which reinforces its attractive valuation. Additionally, its PEG ratio of 0.23 is notably lower than the industry average, further indicating that the stock may be undervalued relative to its growth potential. Despite recent underperformance against the S&P 500, where TreeHouse Foods has seen a YTD decline of 40.22% compared to the index's 2.44% gain, the current valuation metrics suggest that the stock presents a compelling investment opportunity.