Is USANA Health Sciences, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for USANA Health Sciences, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued, especially when considering its P/E ratio of 16, which is higher than the industry average, and an EV to EBITDA ratio of 4.61, which also suggests a premium valuation compared to peers. Additionally, the Price to Book Value stands at 1.03, further reinforcing the notion that the stock is priced above its intrinsic value.
In comparison to its peers, Chromadex Corp. has a much higher P/E ratio of 39.82, while LifeVantage Corp. is more reasonably valued at a P/E of 14.81. This highlights USANA's relative overvaluation within the sector. Furthermore, the company's recent stock performance has been disappointing, with a YTD return of -14.07% compared to the S&P 500's positive return of 12.22%, and a staggering 5-year return of -59.08% against the S&P's 96.61%. This underperformance underscores the challenges facing USANA Health Sciences, Inc. in the current market environment.