--- title: "Freshpet (FRPT) Could Be 34% Undervalued On Russell Growth Index Removals" type: "News" locale: "en" url: "https://longbridge.com/en/news/292033133.md" description: "Freshpet (FRPT) has returned to investor focus following its removal from Russell Growth Benchmark indices, which triggered selling pressure and a YTD decline of 9.38%. Despite this, Simply Wall St analysis suggests the stock is approximately 34% undervalued, with a fair value estimate of $81.94 compared to its recent close of $54.51. This valuation hinges on operational improvements, reduced CapEx, and enhanced margins, though risks include softening demand and competitive pressures." datetime: "2026-07-08T08:06:59.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292033133.md) - [en](https://longbridge.com/en/news/292033133.md) - [zh-HK](https://longbridge.com/zh-HK/news/292033133.md) --- # Freshpet (FRPT) Could Be 34% Undervalued On Russell Growth Index Removals ## Why Freshpet Stock Is Back in Focus After Russell Index Removals Freshpet (FRPT) has moved back onto investors’ radar after being removed from several Russell Growth Benchmark indices. This is a technical shift that can influence trading flows without changing the company’s underlying operations. See our latest analysis for Freshpet. Freshpet’s removal from the Russell growth indices appears to have coincided with a pick up in selling pressure. The stock is at US$54.51, with a year to date share price return down 9.38%, while the 1 year total shareholder return is down 22.54%. This points to fading momentum despite a 30 day share price return of 9.59%. If this index reshuffle has you reassessing your watchlist, it could be a good moment to broaden your search and look through 19 top founder-led companies After the index exits and a recent bounce, the key tension around Freshpet is simple: has the pullback created meaningful upside from here, or has most of the easy opportunity already been priced in as we look at valuation next? ## Most Popular Narrative: 33.5% Undervalued Freshpet’s most followed narrative pegs fair value at $81.94, well above the last close at $54.51, and centers on how operating improvements interact with growth expectations. > _Operational improvements and implementation of new production technologies at Ennis and other facilities have driven higher yields, quality, and throughput, leading to a significant reduction in CapEx ($100 million less over 2025-26) and enhanced gross/EBITDA margins, setting the business up for improving net earnings and cash generation._ _Read the complete narrative._ The fair value hinges on a specific mix of revenue growth, slimmer profit margins, and a higher future earnings multiple than the broader US food sector. Want to see how those moving parts fit together and what kind of earnings profile the narrative assumes by the end of the decade? **Result: Fair Value of $81.94 (UNDERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, the bullish Freshpet narrative could be knocked off course if premium pet food demand softens or if competitors in fresh offerings win more share and squeeze margins. Find out about the key risks to this Freshpet narrative. ## Next Steps Given the mix of optimism and concern around Freshpet, it makes sense to look at the full picture now and decide where you stand based on the data yourself, including its 2 key rewards and 2 important warning signs. ## Looking for more investment ideas beyond Freshpet? Freshpet’s story is just one angle on the market, and widening your search now can help you spot opportunities that others overlook or leave until it is too late. - Target potential mispricings by scanning for companies that combine quality and value using the 45 high quality undervalued stocks. - Prioritize resilience by focusing on businesses with conservative balance sheets through the solid balance sheet and fundamentals stocks screener (47 results). - Hunt for future standouts before they are widely followed with the screener containing 18 high quality undiscovered gems. _This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._ ### **New:** AI Stock Screener & Alerts Our new AI Stock Screener scans the market every day to uncover opportunities. • Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI Companies Or build your own from over 50 metrics. 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