Is Vital Farms, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Vital Farms, Inc. has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its valuation ratios. The P/E ratio stands at 27, which is significantly higher than the industry average, while the EV to EBITDA ratio is 15.41 and the PEG ratio is 1.09, suggesting that the stock may not be priced favorably relative to its earnings growth potential.
In comparison to its peers, Pilgrim's Pride Corp. has a P/E ratio of 8.20 and an EV to EBITDA of 5.77, while Cal-Maine Foods, Inc. boasts a P/E of 6.80 and an EV to EBITDA of 4.23, both indicating more attractive valuations. The higher valuation ratios for Vital Farms suggest it is priced at a premium compared to these competitors. Although specific return data is not available, the absence of a strong performance relative to the S&P 500 may further reinforce the view that the stock is overvalued.