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. Key ratios include a P/E ratio of 120, an EV to EBITDA of 36.23, and a PEG ratio of 0.52, which suggests a potential for growth relative to its price.
In comparison to peers, Freshpet's P/E ratio is significantly higher than The J. M. Smucker Co. at 23.79 and Ingredion, Inc. at 12.88, indicating that while Freshpet may be priced for growth, it is doing so at a premium. Additionally, its EV to EBITDA is also above that of Balchem Corp. at 22.29 and Lancaster Colony Corp. at 17.12, further emphasizing its relative valuation position. Notably, Freshpet's stock has underperformed compared to the S&P 500, with a year-to-date return of -63.46% versus the index's 15.47%, highlighting the challenges the company faces in the current market environment.