Is Lifeway Foods, Inc. overvalued or undervalued?

As of 12 August 2025, the valuation grade for Lifeway Foods, Inc. has moved from expensive to very expensive, indicating a concerning shift in its valuation stance. The company is currently considered overvalued, with a P/E ratio of 42, a Price to Book Value of 5.73, and an EV to EBITDA of 26.34. In comparison, Seneca Foods Corp. has a more reasonable P/E of 26.68, while John B. Sanfilippo & Son, Inc. boasts an attractive P/E of 12.73, highlighting the relative overvaluation of Lifeway Foods.
Despite a strong performance over the long term, with a 3-year return of 351.51% compared to the S&P 500's 70.41%, recent returns show a decline, with a 1-week drop of 17.88% against a slight gain of 1.05% for the S&P 500. This discrepancy reinforces the notion that Lifeway Foods is currently overvalued in the market.