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 appears to be fairly valued based on its current 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 while the company is priced at a premium compared to some peers, it is not excessively so.
In comparison to its peers, Pilgrim's Pride Corp. has a P/E of 8.20 and Cal-Maine Foods, Inc. shows a P/E of 6.80, indicating that Vital Farms is trading at a higher valuation relative to these companies. Despite recent underperformance against the S&P 500, with a 1-year return of 1.44% compared to the index's 14.08%, the long-term performance over 3 years shows a substantial return of 223.69%, which may indicate potential for future growth.