Should You Buy Sprouts Farmers Market Stock at Its Current Valuation?

Sprouts Farmers Market (SFM) is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 33.81X, which positions it at a premium compared to the industry’s average of 20.49X and the S&P 500's 22.01X. The stock is also trading above its median P/E level of 28.05, observed over the past year. The valuation does suggest that Sprouts Farmers is overvalued.Image Source: Zacks Investment ResearchThe recent rally might have pushed Sprouts Farmers’ valuation higher. SFM shares have rallied 19% ye ...