Latest Ratios: P/E Ratio -18.0x · EV/EBITDA N/A · ROE 21.4%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $408M | $1.5B | $1.7B | $680M | $649M | $782M | $833M | — | — |
| Enterprise Value | $413M | $1.5B | $1.6B | $618M | $646M | $752M | $804M | — | — |
| P/E Ratio → | -17.99 | 22.03 | 31.65 | 26.59 | 518.06 | 321.93 | 93.74 | — | — |
| P/S Ratio | 0.54 | 1.92 | 2.78 | 1.44 | 1.79 | 3.00 | 3.89 | — | — |
| P/B Ratio | 1.25 | 4.16 | 6.26 | 3.53 | 4.10 | 5.16 | 5.85 | — | — |
| P/FCF | — | — | 47.13 | 17.26 | — | 805.76 | 594.20 | — | — |
| P/OCF | 12.10 | 43.31 | 26.17 | 13.35 | — | 44.25 | 71.19 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.93 | 2.56 | 1.31 | 1.79 | 2.88 | 3.75 | — | — |
| EV / EBITDA | — | 14.33 | 20.27 | 15.01 | 85.67 | 209.28 | 54.43 | — | — |
| EV / EBIT | 4.67 | 15.90 | 22.66 | 18.74 | 219.47 | 1851.60 | 66.24 | — | — |
| EV / FCF | — | — | 43.44 | 15.70 | — | 774.20 | 573.70 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 37.6% | 37.6% | 37.9% | 34.4% | 30.2% | 31.8% | 34.8% | 30.5% | 32.6% |
| Operating Margin | 11.6% | 11.6% | 10.5% | 7.0% | 0.6% | 0.0% | 5.7% | 2.4% | 6.3% |
| Net Profit Margin | 8.7% | 8.7% | 8.8% | 5.4% | 0.3% | 0.9% | 4.1% | 1.7% | 5.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.4% | 21.4% | 23.1% | 14.6% | 0.8% | 1.7% | 10.1% | 8.0% | 21.1% |
| ROA | 15.1% | 15.1% | 16.8% | 10.4% | 0.6% | 1.3% | 7.5% | 4.3% | 11.6% |
| ROIC | 26.9% | 26.9% | 35.5% | 17.4% | 1.1% | 0.0% | 12.2% | 8.7% | 24.0% |
| ROCE | 26.1% | 26.1% | 25.9% | 17.6% | 1.3% | 0.0% | 13.4% | 9.6% | 20.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.15 | 0.15 | 0.07 | 0.12 | 0.07 | 0.00 | 0.01 | 0.20 | 0.20 |
| Debt / EBITDA | 0.52 | 0.52 | 0.24 | 0.55 | 1.42 | 0.09 | 0.05 | 1.20 | 0.67 |
| Net Debt / Equity | — | 0.01 | -0.49 | -0.32 | -0.01 | -0.20 | -0.20 | 0.16 | -0.23 |
| Net Debt / EBITDA | 0.05 | 0.05 | -1.72 | -1.50 | -0.29 | -8.53 | -1.95 | 0.95 | -0.77 |
| Debt / FCF | — | — | -3.69 | -1.56 | — | -31.55 | -20.50 | — | -0.67 |
| Interest Coverage | 105.42 | 105.42 | 67.87 | 42.18 | 25.83 | 7.81 | 24.88 | 13.66 | 15.98 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.16 | 2.16 | 3.13 | 3.00 | 3.14 | 3.72 | 5.30 | 1.39 | 1.61 |
| Quick Ratio | 1.61 | 1.61 | 2.83 | 2.49 | 2.58 | 3.43 | 4.80 | 0.87 | 1.38 |
| Cash Ratio | 0.93 | 0.93 | 2.04 | 1.79 | 1.65 | 2.62 | 3.78 | 0.05 | 0.70 |
| Asset Turnover | — | 1.46 | 1.69 | 1.71 | 1.69 | 1.37 | 1.25 | 2.27 | 2.14 |
| Inventory Turnover | 7.12 | 7.12 | 15.90 | 9.41 | 9.41 | 16.26 | 10.83 | 7.56 | 18.60 |
| Days Sales Outstanding | — | 32.61 | 32.71 | 30.71 | 39.21 | 37.69 | 38.31 | 45.97 | 35.19 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | 4.5% | 3.2% | 3.8% | 0.2% | 0.3% | 1.1% | — | — |
| FCF Yield | — | — | 2.1% | 5.8% | — | 0.1% | 0.2% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $46M | $45M | $43M | $43M | $43M | $33M | $37M | $37M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying VITL stock.
Vital Farms, Inc.'s current P/E ratio is -18.0x. The historical average is 43.5x.
Vital Farms, Inc.'s return on equity (ROE) is 21.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 12.6%.
Based on historical data, Vital Farms, Inc. is trading at a P/E of -18.0x. Compare with industry peers and growth rates for a complete picture.
Vital Farms, Inc. has 37.6% gross margin and 11.6% operating margin. Operating margin between 10-20% is typical for established companies.
Vital Farms, Inc.'s Debt/EBITDA ratio is 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin volatility and cash burn
Metrics are mathematically derived from official filings.
Low Multiples Reflect Earnings Uncertainty
Based on reported figures, VITL trades at a trailing P/E of 6.61x and EV/EBITDA of 4.01x, below Freshpet at 24.39x and Nomad at 11.55x, a discount that may reflect market doubts about the sustainability of recent earnings rather than simple undervaluation.
The 0.17 PEG and 0.54x price-to-sales ratio suggest the market is pricing little growth, yet the trailing P/E is flattered by earnings that have swung sharply from profit to loss in recent quarters. Investors should monitor whether the low multiple reflects a value opportunity or a justified discount for volatile margins and negative free cash flow. The absence of a forward P/E limits direct assessment of expected earnings recovery.
Margin Collapse Undermines Earning Power
As reported in financial statements, VITL's operating margin fell from 13.4% in 2025Q1 to -4.2% in 2026Q3 and net margin to -3.5%, indicating a sharp erosion of earning power relative to its own 2024 and 2025 history and to peers.
Gross margin volatility, swinging between 6.6% and 38.9%, suggests pricing realization or input cost exposure that is not yet stabilized. Operating deleverage appears to be amplifying the gross margin swings because overhead remains largely fixed. Recent quarters point to weaker structural profitability, though the 2026Q2 trough may partly reflect non-recurring pressures that warrant further investigation.
Returns Compress From Peak to Negative
Based on EDBL's reported figures, VITL's ROIC declined from 11.3% in 2025Q1 to -1.8% in 2026Q3, while ROE moved from 6.1% to -2.3%, pointing to returns that have decayed well below the company's own historical levels.
The compression in ROIC is driven primarily by collapsing operating margins rather than asset efficiency, since asset turnover remained relatively stable near 0.33x to 0.46x. Returns now sit below peer Simply Good Foods at 8.1%, suggesting the company is no longer compounding invested capital. Whether returns recover depends on margin normalization, which the recent data does not yet confirm.
Low Debt Tempered by Coverage Swings
According to recent SEC filings, VITL's debt-to-equity rose to 0.38x at the 2026Q2 peak before easing to 0.26x, while interest coverage turned negative at -2.62x, showing leverage remains modest but debt service capacity has weakened sharply.
Total debt movement from $17.6M to $108.2M and back to $72.6M indicates meaningful borrowing swings that the low headline leverage ratio may obscure. Negative interest coverage in recent quarters suggests operating earnings have not covered interest expense, a condition that warrants monitoring even at modest absolute debt levels. Refinancing or covenant exposure cannot be assessed from the supplied data.
Liquidity Buffer Thins Under Burn
Based on reported figures, VITL's current ratio compressed from 3.35x in 2025Q1 to 1.10x in 2026Q2 and quick ratio to 0.60x, indicating a substantially thinner short-term cushion as cash burn persisted.
The quick ratio falling below 1.0x at the 2026Q2 low suggests dependence on inventory conversion to meet near-term obligations, which may be vulnerable under stress. The partial recovery to 1.56x current ratio in 2026Q3 is encouraging but does not restore the earlier buffer. Stress resilience depends on whether free cash flow turns positive, which has not yet occurred.
Peer Premium Thesis Challenged by Margins
Based on reported peer figures, the low P/E of 6.61x may appear to signal mispricing, yet trailing operating margin of -4.2% trails Simply Good Foods and Freshpet, which may indicate the discount reflects structural rather than temporary weakness.
A reader could argue the valuation discount is excessive given the 2024 operating margin near 13% and gross margin recovery to 23.1% in 2026Q3. However, the P/E ratio is the most misleading metric here because trailing earnings include losses from a volatile quarter, so EV/EBITDA or normalized operating margin may be a more reliable anchor. Investors should monitor whether margin recovery persists before treating the multiple discount as an opportunity.