Sprouts Farmers Market, Inc. SFM has been on a steady upward trajectory, fueled by strong consumer demand for fresh and organic groceries. Closing at $155.25 yesterday, shares of SFM have rallied 15.3% over the past three months, outpacing the industry’s growth of 3.3%. 

Image Source: Zacks Investment Research

Well, the recent rally might have pushed Sprouts Farmers’ valuation higher. SFM currently trades at a forward 12-month price-to-earnings (P/E) multiple of 32.24X, which positions it at a premium compared to the industry’s average of 20.13X and the S&P 500’s 20.52X. The stock is also trading above its median P/E level of 29.57, observed over the past year. The valuation does suggest…