Is Freshpet, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Freshpet, Inc. has moved from very attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued based on its high P/E ratio of 120, compared to peers like The J. M. Smucker Co. at 23.79 and Ingredion, Inc. at 12.88. Additionally, Freshpet's EV to EBITDA stands at 36.23, which is significantly higher than the industry average, further supporting the overvaluation assessment.
In terms of performance, Freshpet has experienced substantial declines, with a year-to-date return of -66.77% compared to the S&P 500's gain of 16.30%, and a three-year return of -16.52% versus the S&P 500's 76.66%. This stark contrast reinforces the notion that Freshpet is currently overvalued in the market.