Is US Foods Holding Corp. overvalued or undervalued?

As of 8 May 2025, the valuation grade for US Foods Holding Corp. moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 24, an EV to EBITDA of 13.14, and a PEG ratio of 0.81. In comparison, its peer, which has a P/E of approximately 23.8 and an EV to EBITDA of 12.85, suggests that US Foods is trading at a premium relative to its industry.
Despite the recent stock performance showing a 42.83% return over the past year compared to the S&P 500's 10.26%, the company's elevated valuation metrics indicate that it may not be a prudent investment at this time. The ROCE stands at 13.63% and ROE at 15.93%, which are respectable but do not justify the current price level given the overall market context.