Is Calavo Growers, Inc. overvalued or undervalued?

As of 9 September 2025, Calavo Growers, Inc. has moved from a fair to an expensive valuation grade. The company appears overvalued based on its current metrics, with a P/E ratio of 35, a Price to Book Value of 2.45, and an EV to EBITDA of 13.58. In comparison, its peer SNDL, Inc. has a P/E ratio of -10.87 and MGP Ingredients, Inc. has a P/E of 6.85, indicating that Calavo's valuation is significantly higher than its peers.
The company's recent performance has been lackluster, with a 1-year return of -3.40% compared to the S&P 500's 17.14%, and a staggering 5-year return of -59.31% versus the S&P 500's 96.61%. This underperformance reinforces the notion that Calavo Growers, Inc. is overvalued in the current market environment.