Is Universal Corp. overvalued or undervalued?

As of 22 May 2024, the valuation grade for Universal Corp. has moved from fair to very attractive, indicating a positive shift in its perceived value. The company appears undervalued based on its key ratios, including a P/E ratio of 11, an EV to EBITDA of 7.64, and a Price to Book Value of 1.03, which are all favorable compared to its peers. For instance, Vector Group Ltd. has a P/E of 12.62, while Turning Point Brands, Inc. shows a significantly higher P/E of 30.28, reinforcing Universal Corp.'s attractiveness.
In terms of performance, Universal Corp. has underperformed against the S&P 500 over various periods, with a 1Y return of 7.97% compared to the S&P 500's 17.14%, and a 5Y return of 29.88% versus 96.61% for the index. This underperformance may suggest that the market has not fully recognized the company's value, further supporting the conclusion that Universal Corp. is undervalued.