Is Arvind Fashions overvalued or undervalued?

As of 10 November 2025, the valuation grade for Arvind Fashions has moved from very attractive to attractive, indicating a shift in perceived value. The company is currently considered undervalued, particularly when compared to its peers. Key ratios include a PE Ratio of -446.31, an EV to EBITDA of 19.73, and a Price to Book Value of 0.68, which suggest that the market may not be fully recognizing the company's potential.
In comparison with peers, Arvind Fashions has a significantly lower PE Ratio than Avenue Supermarts at 95.67 and Trent at 93.86, both of which are categorized as very expensive. Additionally, while Arvind's EV to EBITDA stands at 19.73, it is more favorable than the high valuations of its competitors. Despite recent stock performance lagging behind the Sensex, particularly over the past year with a decline of 14.31% compared to the Sensex's 5.09% gain, the underlying ratios indicate that Arvind Fashions presents a compelling investment opportunity in the garments and apparel sector.