Is Limoneira Co. overvalued or undervalued?

As of 9 June 2025, Limoneira Co. has moved from a fair to a risky valuation grade. The company appears to be overvalued, as indicated by its high P/E ratio of 35 compared to peers like SNDL, Inc. with a P/E of -10.87 and MGP Ingredients, Inc. at 6.85. Additionally, the EV to EBITDA ratio stands at an alarming 108.26, while the PEG ratio is a low 0.21, suggesting that the stock is not priced appropriately relative to its growth potential.
The peer comparison highlights that Limoneira Co. is significantly underperforming, with a return on equity (ROE) of only 4.30% and a return on capital employed (ROCE) of -2.02%. In terms of stock performance, Limoneira has struggled recently, with a year-to-date return of -37.16% compared to a 12.22% gain in the S&P 500, reinforcing the notion that the stock is overvalued.