Is Arvind Fashions overvalued or undervalued?

As of 7 October 2025, the valuation grade for Arvind Fashions has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, particularly in light of its PE ratio of -306.45, which suggests extreme market skepticism, alongside an EV to EBITDA ratio of 12.96 and a Price to Book Value of 7.35. In comparison to its peers, Arvind Fashions stands out as it has a PEG ratio of 0.00, while Avenue Supermarts and Trent are categorized as very expensive with PE ratios of 103.49 and 105.18, respectively. Despite recent stock performance showing a decline of 7.14% over the past year compared to a modest 1.08% gain in the Sensex, the long-term outlook remains promising, evidenced by a remarkable 299.96% return over the past five years.