Is Freshpet, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Freshpet, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, despite a high P/E ratio of 120, which is significantly above the industry average. Other relevant ratios include a Price to Book Value of 3.74 and an EV to EBITDA of 36.23, indicating that while the stock may seem high-priced relative to earnings, it is more reasonably valued when considering growth potential, as reflected by a PEG ratio of 0.52.
In comparison with peers, Freshpet's P/E ratio of 53.71 is notably higher than The J. M. Smucker Co. at 23.79 and Ingredion, Inc. at 12.88, suggesting that while Freshpet is perceived as more expensive, it may also have greater growth expectations. Over the past year, Freshpet's stock has underperformed significantly, with a return of -59.31% compared to the S&P 500's return of 16.90%, reinforcing the notion that the stock may be adjusting to a more realistic valuation after a period of excessive optimism.