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

As of 15 August 2025, The Vita Coco Co., Inc. has moved from a fair to an expensive valuation grade. The company appears overvalued based on its current metrics, with a P/E ratio of 34, a Price to Book Value of 7.76, and an EV to EBITDA ratio of 26.71, all of which are significantly higher than its peers. For instance, The Simply Good Foods Co. has a P/E ratio of 17.32, while Campbell Soup Co. shows a much lower P/E of 13.36, indicating that The Vita Coco Co. is trading at a premium compared to these competitors.
Additionally, despite its strong ROCE of 60.01% and ROE of 22.75%, the high valuation ratios suggest that the market may be overestimating its growth potential. In terms of recent performance, The Vita Coco Co. has outperformed the S&P 500 over the past year, returning 38.05% compared to the index's 17.14%, which may have contributed to its elevated valuation.