Is Calavo Growers, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Calavo Growers, Inc. has moved from fair to expensive, indicating that the company is overvalued. The P/E ratio stands at 35, significantly higher than the peer average of approximately 32.23, while the EV to EBITDA ratio is 13.58, which also suggests a premium compared to peers like Adecoagro SA with an EV to EBITDA of 11.04. Additionally, the PEG ratio of 0.04 indicates an expensive valuation relative to growth expectations.
In comparison to its peers, Calavo Growers, Inc. shows a higher valuation across multiple metrics, reinforcing the conclusion of overvaluation. The company's recent performance has been disappointing, with a year-to-date return of -12.90%, significantly lagging behind the S&P 500's return of 16.30% over the same period, further highlighting the disconnect between its valuation and market performance.