Is Mission Produce, Inc. overvalued or undervalued?

As of 10 March 2025, the valuation grade for Mission Produce, Inc. has moved from fair to expensive, indicating that the company is overvalued. With a P/E ratio of 18, a Price to Book Value of 1.41, and an EV to EBITDA of 9.06, these metrics suggest that the company's valuation is not justified by its earnings and asset values compared to its peers.
In comparison, Fresh Del Monte Produce, Inc. has a P/E ratio of 10.64 and an EV to EBITDA of 7.38, while Vital Farms, Inc. shows a significantly higher P/E ratio of 29.69 and an EV to EBITDA of 17.34. These figures highlight that Mission Produce is trading at a premium relative to its industry peers. Additionally, the company's recent stock performance shows a 1-year return of 23.59%, which outperforms the S&P 500's 10.26% return, yet this does not mitigate the overvaluation indicated by its current financial ratios.