Is Freshpet, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Freshpet, Inc. has moved from very attractive to fair. The company appears overvalued based on its high P/E ratio of 120, which significantly exceeds the industry average, and an EV to EBITDA ratio of 36.23, indicating a premium valuation relative to earnings before interest, taxes, depreciation, and amortization. Additionally, the PEG ratio stands at 0.52, suggesting that the stock may not be justified by its growth rate.
In comparison to 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, both of which are considered more attractively valued. Furthermore, Freshpet's recent stock performance has been poor, with a year-to-date return of -62.17%, starkly underperforming the S&P 500's return of 16.30% during the same period, reinforcing the notion that the stock is overvalued.