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 perception. The company appears to be overvalued, particularly when considering its P/E ratio of 27, which is significantly higher than peers like Pilgrim's Pride Corp. with a P/E of 8.20 and Cal-Maine Foods, Inc. at 6.80. Additionally, the EV to EBITDA ratio stands at 15.41, again higher than many competitors, suggesting that the market may be pricing in excessive growth expectations.
In comparison to the S&P 500, Vital Farms has shown mixed performance, with a notable 3-year return of 127.22%, outpacing the index's 76.76%, while its year-to-date return of -12.52% lags behind the S&P 500's 14.40%. This disparity in returns reinforces the notion that the stock may be overvalued given its current market metrics.