Vital Farms, Inc. (VITL): fair value, margin of safety and Wheel Score

Is VITL undervalued?

Vital Farms, Inc. (VITL) closed at 8.91 on 16 Oct 2026. The GLS average fair value - the simple average of the 6 valuation models that produced a positive number - is 12.57, so the price sits 29% below it. 1 of the 6 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.

There is a wide gap between EPV (0.0404) and DCF (74.12). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

The nightly engine files VITL under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.

Nine valuation models for VITL

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Vital Farms, Inc. scores only 3 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. On durability VITL scores 6.2/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.

Returns on capital are high - ROIC 16.4%, ROE 18.9%, ROA 12.8% - with debt at 0.15 times equity and negative free cash flow.

Vital Farms, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Eggs And Egg Related Products 97%, Butter And Butter Related Products 3% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 45: Weak

With a Wheel Score of 45 Vital Farms, Inc. sits in the Weak band, capped at 45 because the engine files it as Speculative / Distressed. The parts - Value 25/25, Health 7/20, Moat 9/15, Premium 13/20, Stability 14/20 - show where: Health (7/20) scores lowest.

Implied volatility is 87% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (13 of 20) because volatility this high usually comes with a reason. Chain open interest is 41,964 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 1.9M shares a day on a market cap of $383M, with a beta of 1.08; the Stability part of the Wheel Score gives that 14 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 3 Nov 2026 (before the open), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Agricultural Farm Products

The 12 companies below are the closest to Vital Farms, Inc. by market cap within the Agricultural Farm Products industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare VITL with 7 of them   All Consumer Defensive stocks →