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 metrics. The PE ratio stands at an astonishing 825.46, while the EV to EBITDA ratio is 129.12, both significantly higher than industry peers. For instance, Hindustan Unilever has a PE ratio of 58.68 and an EV to EBITDA of 41.44, showcasing a stark contrast in valuation.
FSN E-Commerce's key ratios, including a Price to Book Value of 50.60 and a PEG ratio of 7.77, further reinforce its overvaluation status. Compared to peers like Britannia Industries, which has a PE ratio of 64.01, FSN E-Commerce's metrics suggest that it is not only expensive but also lacks the fundamental support to justify such high valuations. Despite recent stock performance showing a 41.11% year-to-date return compared to a 2.14% return of the Sensex, the underlying valuation metrics indicate that FSN E-Commerce is overvalued in the current market environment.