Is Calavo Growers, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Calavo Growers, Inc. 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 the peer average P/E of approximately 32.23, and an EV to EBITDA ratio of 13.58, which also exceeds the peer benchmark. Additionally, the PEG ratio stands at a notably low 0.04, suggesting that the stock is not priced appropriately relative to its growth prospects.
In comparison to its peers, SNDL, Inc. and MGP Ingredients, Inc., which have P/E ratios of -10.87 and 6.85 respectively, Calavo Growers, Inc. is positioned at a premium. The company's recent stock performance has lagged significantly behind the S&P 500, with a one-year return of -16.76% compared to the index's 19.89%, reinforcing the notion of overvaluation.