Is Vital Farms, Inc. overvalued or undervalued?

As of 8 September 2025, the valuation grade for Vital Farms, Inc. has moved from expensive to fair, indicating a more favorable assessment of its stock price. The company appears fairly valued at this time. Key ratios include a P/E ratio of 27, an EV to EBITDA of 15.41, and a PEG ratio of 1.09, which suggest that while the stock is not the cheapest in its sector, it is not excessively priced either.
In comparison to its peers, Vital Farms has a higher P/E ratio than Pilgrim's Pride Corp. at 8.20 and Cal-Maine Foods, Inc. at 6.80, both of which are considered very attractive. Despite this, Vital Farms' return over the past year of 44.37% significantly outperformed the S&P 500's return of 17.14%, reinforcing the notion that the stock is currently fairly valued given its strong performance relative to the broader market.