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 its peers. For comparison, Hindustan Unilever has a PE ratio of 58.68 and an EV to EBITDA of 41.44, while Britannia Industries shows a PE of 64.01 and an EV to EBITDA of 43.96.
Given these ratios, FSN E-Commerce is overvalued in the context of its industry, with a PEG ratio of 7.77 further underscoring this assessment. Despite recent stock performance showing a 41.11% year-to-date return compared to a mere 2.14% for the Sensex, the underlying valuation metrics suggest that the stock is not justified at its current price of 230.15.