Is Nature's Sunshine Products, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Nature's Sunshine Products, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a P/E ratio of 26, which is notably higher than the industry average, and an EV to EBITDA ratio of 5.08, suggesting that investors are paying a premium compared to its earnings potential. Additionally, the Price to Book Value stands at 1.65, further reinforcing the notion of overvaluation relative to its tangible assets.
In comparison to its peers, Nature's Sunshine Products, Inc. has a higher P/E ratio than Chromadex Corp. at 39.82 and USANA Health Sciences, Inc. at 16.23, both of which are also classified as very expensive. The company's recent stock performance shows a 1-year return of 23.71%, outperforming the S&P 500's 17.14% return, but this does not mitigate the concerns regarding its current valuation. Overall, the combination of high valuation ratios and peer comparisons indicates that Nature's Sunshine Products, Inc. is overvalued in the current market.