Is Limoneira Co. overvalued or undervalued?

As of 9 June 2025, the valuation grade for Limoneira Co. has moved from very expensive to risky. The company appears to be overvalued based on its current metrics, with a P/E ratio of 35, a Price to Book Value of 1.50, and an EV to EBITDA ratio of 108.26. These ratios indicate that the stock is trading at a premium compared to its earnings and asset value.
In comparison to peers, Fresh Del Monte Produce, Inc. has a P/E of 10.64 and an EV to EBITDA of 7.38, while Vital Farms, Inc. shows a P/E of 29.69 and an EV to EBITDA of 17.34. These figures highlight that Limoneira Co. is significantly overvalued relative to its industry counterparts. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -37.74% compared to the S&P 500's 2.44%.