Is The Vita Coco Co., Inc. overvalued or undervalued?

As of 18 June 2025, The Vita Coco Co., Inc. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a P/E ratio of 34, significantly higher than its peers such as B&G Foods, Inc. with a P/E of 2.95 and The Hain Celestial Group, Inc. at 8.99. Additionally, the company's EV to EBITDA stands at 26.71, which is also elevated compared to its industry counterparts.
The valuation metrics indicate a concerning trend, with a PEG ratio of 3.74 suggesting that the stock is priced for growth that may not materialize. Despite a strong ROCE of 60.01% and ROE of 22.75%, the high price-to-book value of 7.76 further underscores the overvaluation. While The Vita Coco Co. has outperformed the S&P 500 over the past year with a return of 27.07% compared to 10.26%, the current valuation metrics suggest that investors should exercise caution.