Is Vital Farms, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Vital Farms, Inc. moved from very expensive to fair. The company is currently fairly valued based on its financial metrics. 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 the stock is reasonably priced relative to its earnings growth potential.
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, indicating that it is valued more richly than these competitors. Despite this, its ROCE of 44.59% and ROE of 17.83% demonstrate strong profitability. Over the past year, Vital Farms has returned 1.44%, significantly underperforming the S&P 500's 14.08%, which reinforces the notion that while the stock is fairly valued, it may not be the best investment compared to broader market performance.