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

As of 21 November 2025, the valuation grade for Natural Grocers by Vitamin Cottage, Inc. 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 the peer average of 19.44 for companies like Sprouts Farmers Market, Inc., and the EV to EBITDA ratio of 11.42 also exceeds the peer average of 9.56.
In comparison to its peers, Natural Grocers has a PEG ratio of 0.54, which is more favorable than Sprouts Farmers Market's 0.55, but still indicates a high valuation relative to growth. The company has underperformed against the S&P 500 in recent periods, with a year-to-date return of -27.44% compared to the S&P 500's 12.26%, reinforcing the notion that it may be overvalued.