Is Weis Markets, Inc. overvalued or undervalued?

As of 7 May 2025, Weis Markets, Inc. has moved from an expensive valuation grade to fair. The company is currently fairly valued, with a P/E ratio of 24, a Price to Book Value of 1.72, and an EV to EBITDA of 9.39. In comparison, Grocery Outlet Holding Corp., a peer in the industry, has a P/E ratio of 22.30 and an EV to EBITDA of 8.46, indicating that Weis Markets is slightly more expensive than its peer but still within a reasonable range.
The company's return metrics show a ROCE of 10.33% and a ROE of 7.27%, which are respectable figures in the grocery sector. Notably, Weis Markets has outperformed the S&P 500 over the past year, with a return of 20.03% compared to the index's 10.26%, reinforcing the notion that the stock is fairly valued given its performance relative to broader market trends.