Is FSN E-Commerce overvalued or undervalued?

As of 29 August 2025, the valuation grade for FSN E-Commerce has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current financial metrics. The PE ratio stands at an astonishing 825.46, while the EV to EBITDA ratio is 129.12, both significantly higher than industry norms. Additionally, the PEG ratio is 7.77, suggesting that the stock is priced excessively relative to its growth potential.
In comparison to its peers, FSN E-Commerce's PE ratio is substantially higher than Hindustan Unilever's 58.68 and Nestle India's 74.07, both of which are categorized as very expensive. This stark contrast highlights the overvaluation of FSN E-Commerce in the e-retail sector. Despite a strong year-to-date return of 41.11% compared to the Sensex's 2.14%, the underlying financial ratios suggest that the stock is overvalued, warranting caution for potential investors.