Is Natural Grocers by Vitamin Cottage, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Natural Grocers by Vitamin Cottage, Inc. has moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 24, which is significantly higher than its peer Sprouts Farmers Market, Inc. at 27.62, and the EV to EBITDA ratio is 11.42, compared to the lower 9.56 of its peer Albertsons Cos., Inc. Additionally, the PEG ratio of 0.54 suggests that the stock may not be priced favorably relative to its growth prospects.
In terms of performance, Natural Grocers has shown a 1-year return of 43.66%, which outpaces the S&P 500's return of 13.36% over the same period, indicating strong recent performance despite its high valuation. However, the company's year-to-date return of -6.14% contrasts sharply with the S&P 500's 11.41%, suggesting volatility and potential overvaluation concerns. Overall, the combination of high valuation ratios and mixed performance metrics leads to the conclusion that Natural Grocers is overvalued.