Is UniFirst Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for UniFirst Corp. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, UniFirst appears to be fairly valued. The P/E ratio stands at 22, which is slightly above the peer average of approximately 20.5, while the EV to EBITDA ratio is 9.48, suggesting a competitive position relative to peers like Service Corp. International, which has a P/E of 21.11 and an EV to EBITDA of 12.77. Additionally, the PEG ratio of 0.70 indicates potential growth at a reasonable price compared to the industry.
In terms of performance, UniFirst has underperformed against the S&P 500 over various periods, with a 1-year return of -13.20% compared to the index's 14.08%. This trend continues over longer horizons, with a 10-year return of -12.31% versus the S&P 500's impressive 227.77%. Overall, while UniFirst's valuation metrics suggest it is fairly valued, its recent stock performance raises concerns about its growth prospects relative to the broader market.