While Whole Foods Market (NASDAQ:WFM) is busy shedding its reputation for selling pricey groceries, there's little debate about its stock being expensive. Shares are up better than 300% over the past five years, and are valued at 40 times trailing earnings. However, long-term investors shouldn't shun the stock even at that price. In the video below, Fool contributor Demitrios Kalogeropoulos provides three reasons that the grocer deserves a premium.

Whole Foods is growing comparable sales at an industry-leading clip, he says, and is opening new locations at a record pace. Plus, the company just set a new quarterly record for gross profit. Together, Demitrios argues, these metrics mean that Whole Foods could quickly earn its valuation and make today's share price seem cheap in just a few years.

Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Whole Foods Market. The Motley Fool owns shares of Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.