Is Vita Coco Stock Cheaper Now That Its Multiple Has Fallen?
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When evaluating The Vita Coco Company (COCO), most investors would start with a simple rule: a lower price-to-earnings multiple, or what investors pay for each dollar of profit, means a cheaper stock. Three years ago, Vita Coco’s multiple was 39.7, and at the latest close it was 26.9. Does a multiple that has fallen this far mean the stock is cheaper?
Vita Coco Stock Rose While Its Multiple Fell
Over those three years, Vita Coco’s share price rose 116.5%, excluding dividends. The stock went up while its multiple came down. Buyers paid more for each share, and less for every dollar of profit behind it.
How Much Has Vita Coco’s Profit Grown?
Vita Coco generated $120 million in profit over the latest twelve months, up from $37 million three years earlier. That figure is 3.3 times as large as it was.
| Twelve months to | Net income | Change in a year | Price-to-earnings |
|---|---|---|---|
| Sep 30, 2021 | $39.5 million | not given: no net income figure for the twelve months a year earlier | not given: no multiple in the data |
| Sep 30, 2022 | $7.21 million | -81.8% | 88.2 |
| Sep 30, 2023 | $37 million | +414% | 39.7 |
| Sep 30, 2024 | $59.4 million | +60.2% | 27.1 |
| Sep 30, 2025 | $69.2 million | +16.5% | 34.9 |
| Sep 30, 2026 | $120 million | +74.2% | 27.3 |
| Sep 30, 2026 (at the share price of Oct 28, 2026) | $120 million | +74.2% | 26.9 |
Net income is the reported total for the twelve months ending on the date shown. Change in a year is that net income against the twelve months before. Each price-to-earnings multiple is the market value at the calendar quarter end paired with those twelve months, over that net income; the last row uses the share price of Oct 28, 2026.
Vita Coco Coconut Water accounts for most of what the company sells, making up 81.4% of revenue in fiscal 2025. In the latest quarter, management said the rise in net income came mainly from higher gross profit from the growth of its core business, alongside the benefits of Copra, a coconut water business Vita Coco acquired in 2026.
Does A Lower Multiple Make Vita Coco Cheaper?
The lower multiple is not a markdown on Vita Coco shares. The better question is what investors were paying for when the multiple was high, and how much of it has since arrived.
Vita Coco’s multiple peaked at 99.0 at the end of 2022, and profit today is about 15 times what it was then. That peak rested on profit of $7.81 million for the four quarters to December 2022, a date the table above does not show. That 2022 profit was itself a slump, down from $39.5 million in the twelve months to September 2021. Investors paid the most for each dollar of profit when there was far less profit, because they expected it to grow, and it did. A growing company’s multiple tends to follow this curve: highest while the profit is still ahead, and lower as the profit arrives.
A buyer today pays less for each dollar of profit than a buyer did three years ago. That earlier buyer was paying for growth that has since happened. The lower multiple reflects what Vita Coco stock looks like as the growth arrives, not a discount.
Where Is Vita Coco On That Curve Now?
Vita Coco’s profit growth accelerated in the latest twelve months. Profit rose 74.2% over that period, following a 16.5% rise in the twelve months before. Sales rose 26.0% over the latest twelve months, so profit grew faster than sales. Vita Coco’s multiple today sits above the S&P 500’s 22.6. The company is well down from the top of its curve, but buyers still pay more for each dollar of its profit than for the market’s.
The figure to watch is whether Vita Coco’s profit keeps growing at the pace of the latest twelve months. On Oct 22, management raised its fiscal 2026 net sales guidance to between $810 million and $820 million.
How To Act On COCO?
Not necessarily on Vita Coco alone, if your goal is long-term wealth. Wealth is built by owning the companies that keep outperforming, the leaders of their industries, wherever they are. Vita Coco is one. Over the five years to October 2026, its stock rose 325%, ahead of 11 of the 12 other companies in Soft Drinks & Non-alcoholic Beverages, where the typical company rose 12.4%.
Finding companies like these takes comparison across industries and sectors, and that is what the Trefis High Quality (HQ) Portfolio does. It holds 30 quality companies in equal weight and, since its inception in September 2020, has returned more than 105%, ahead of a benchmark that combines the S&P 500, S&P Mid-cap and Russell 2000. See how we find the leaders.
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