Based on the provided data, I'll analyze whether SYY is overvalued through multiple valuation metrics and recent analyst perspectives.
Valuation Analysis
SYY currently trades at a P/E of 19.99x, which is relatively high compared to its historical average. The EV/EBITDA ratio of 11.31x suggests moderate valuation levels for a food distribution company. The P/S ratio of 0.49x indicates reasonable pricing relative to sales.
Analyst Consensus
Recent analyst actions show mixed sentiment. Morgan Stanley lowered their price target to $79 (January 21, 2025), while Jefferies maintains a more bullish $95 target with a Strong Buy rating (December 2024). The average analyst price target of $85.85 implies a 16.48% upside potential.
Market Performance
SYY has underperformed significantly, declining 1.9% over the past 52 weeks compared to the S&P 500's 21.8% gain. This underperformance suggests the stock isn't experiencing valuation expansion despite the broader market rally.
Growth Outlook
Analysts expect fiscal 2025 EPS of $4.57, representing 6% growth from fiscal 2024's $4.31. This moderate growth rate doesn't justify premium valuation multiples.
Final Assessment
Given the moderate growth outlook, current market position, and relative valuation metrics, SYY appears fairly valued rather than overvalued at current levels.