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 a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 35, which is significantly higher than its peers, such as SNDL, Inc. with a P/E of -10.87 and MGP Ingredients, Inc. at 6.85. Additionally, Calavo's EV to EBITDA ratio stands at 13.58, while its PEG ratio is notably low at 0.04, suggesting that the stock may not be justified at its current price level.
In terms of performance, Calavo Growers has underperformed compared to the S&P 500 across multiple time frames, with a year-to-date return of -12.90% versus the S&P 500's 16.30%, and a staggering 5-year return of -66.91% compared to the S&P 500's 109.18%. This underperformance reinforces the notion that the stock is overvalued in the current market context.