Is FSN E-Commerce overvalued or undervalued?

As of 3 September 2025, the valuation grade for FSN E-Commerce has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued, with a staggering PE ratio of 850.75, a Price to Book Value of 52.15, and an EV to EBITDA ratio of 133.01. These metrics suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, FSN E-Commerce's valuation is markedly higher; for instance, Hindustan Unilever has a PE ratio of 58.81 and an EV to EBITDA of 41.54, while Nestle India shows a PE of 76.56 and an EV to EBITDA of 49.2. This stark contrast highlights the overvaluation of FSN E-Commerce within the e-retail sector. Additionally, the company's recent stock performance has outpaced the Sensex, with a year-to-date return of 45.71% compared to the Sensex's 3.11%, further emphasizing the disconnect between market perception and intrinsic value.