Is USANA Health Sciences, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for USANA Health Sciences, Inc. moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, as evidenced by its P/E ratio of 16, which is lower than the peer average of 16.23 for similar companies such as Chromadex Corp. and Nature's Sunshine Products, Inc., both of which are also categorized as very expensive. Additionally, USANA's EV to EBITDA ratio stands at 4.61, while its peers like LifeVantage Corp. have a more favorable ratio of 8.26, further highlighting its overvaluation.
In terms of returns, USANA has significantly underperformed compared to the S&P 500, with a year-to-date decline of 41.07% versus the index's gain of 16.30%. This trend is consistent over longer periods, with a 5-year return of -72.04% compared to the S&P 500's 109.18%. Overall, the combination of valuation metrics and poor stock performance suggests that USANA Health Sciences, Inc. is overvalued in the current market environment.