Is United Natural Foods, Inc. overvalued or undervalued?

As of 6 December 2023, the valuation grade for United Natural Foods, Inc. has moved from expensive to risky. The company appears to be overvalued given its current metrics, particularly with a P/E ratio of 22, which is significantly higher than its peer average of approximately 15.05, and an EV to EBITDA ratio of 7.57, compared to peers like Dole Plc at 6.0044. Additionally, the PEG ratio stands at a low 0.05, indicating potential overvaluation relative to its growth prospects.
In comparison to its peers, The Chefs' Warehouse, Inc. has a much higher P/E of 39.53, while SpartanNash Co. also reflects a risky valuation with a P/E of 15.43. The stock has outperformed the S&P 500 in the short term, with a 1-year return of 98.01% compared to the S&P 500's 17.14%, but the long-term performance shows a decline of 26.42% over three years, contrasting sharply with the S&P's 70.41% gain. This mixed performance reinforces the view that United Natural Foods, Inc. is currently overvalued.