Is Village Super Market, Inc. overvalued or undervalued?

As of 3 June 2025, the valuation grade for Village Super Market, Inc. has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a P/E ratio of 10, an EV to EBITDA of 4.57, and a PEG ratio of 0.65, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Village Super Market, Inc. has a lower P/E ratio than Natural Grocers by Vitamin Cottage, Inc., which stands at 21.91, and Ingles Markets, Inc., which is at 18.27, highlighting its relative undervaluation. Additionally, the company's ROCE of 16.34% and ROE of 11.65% further reinforce its strong operational performance. Notably, Village Super Market has outperformed the S&P 500 with a 1-year return of 55.69% compared to the index's 10.26%, underscoring its strong market position and growth potential.