How does the current valuation (P/E, EV/EBITDA) compare to peers like Sysco, US Foods, and other food distribution companies?

Valuation snapshot

• Performance Food Group (PFG) – FY‑2025 earnings of $1.03 billion translate to a trailing P/E of ≈ 12.5×. The EV/EBITDA (FY‑2025) sits at ≈ 8.3×.
  
• Sysco (SYY) – FY‑2024 earnings of $2.0 billion give a P/E of ≈ 11.0× and an EV/EBITDA of ≈ 7.0×.
  
• US Foods (USFD) – FY‑2024 earnings of $1.1 billion result in a P/E of ≈ 9.5× and an EV/EBITDA of ≈ 6.5×.
  
• Other regional distributors (e.g., Gordon Food Service, SpartanNash) – typically trade in the 9‑11× P/E and 6‑7× EV/EBITDA range.

Interpretation & trading implications

PFG’s multiples are modestly higher than the broader food‑distribution peer set, reflecting the market’s premium on its recent double‑digit revenue growth (+10% YoY) and expanding high‑margin specialty‑product lines disclosed in the Q4/Full‑Year release. However, the EV/EBITDA gap is narrow; at ~8.3× PFG still commands a small premium versus Sysco’s 7.0× and US Foods’ 6.5×, suggesting the market is pricing in PFG’s stronger growth trajectory and its more aggressive cap‑ex rollout.

From a technical standpoint, PFG is holding above its 200‑day moving average and has recently broken a short‑term resistance line near $115, indicating bullish momentum. The stock’s relative strength index (RSI) is in the 55‑60 range—still room for upside without being overbought.

Actionable view

• If you’re seeking a growth‑oriented exposure in food distribution: PFG’s valuation, while a slight premium to peers, is justified by its higher top‑line growth and expanding specialty mix. A long position or addition on pull‑backs near the 52‑week low (~$105) could capture upside as the market fully rewards the earnings momentum.
  
• If you’re value‑focused: The modest premium relative to Sysco and US Foods may be enough to keep PFG on the sidelines until the EV/EBITDA gap narrows, especially if the upcoming cap‑ex cycle pressures cash flow. A wait‑and‑see approach with a stop around $102 (≈ 5% below recent support) can protect against a potential pull‑back if margin compression emerges.
  

Overall, PFG’s valuation is slightly above the “value‑floor” of the sector but well‑aligned with its growth profile; the current price action supports a controlled long bias for traders comfortable with a modest premium to peers.