Is Freshpet, Inc. overvalued or undervalued?

As of 31 October 2025, Freshpet, Inc. has moved from a very attractive to a fair valuation grade. The company appears to be overvalued given its high P/E ratio of 120, compared to peers like The J. M. Smucker Co. with a P/E of 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, indicating a premium valuation relative to its earnings potential.
In comparison to its peers, Freshpet's PEG ratio of 0.52 suggests it may be undervalued in terms of growth, but the overall high valuation ratios indicate a disconnect between its market price and fundamental performance. The company's recent stock performance shows a stark contrast to the S&P 500, with a year-to-date return of -62.02% compared to the index's 16.30%, reinforcing the notion that Freshpet is currently overvalued.