Is Pace E-Commerce overvalued or undervalued?

As of 29 May 2025, the valuation grade for Pace E-Commerce has moved from does not qualify to very attractive, indicating a significant improvement in its investment appeal. The company is currently assessed as undervalued, with a PE ratio of 16.13, a Price to Book Value of 0.73, and an EV to EBITDA ratio of 13.48. These ratios suggest that the company's stock is trading at a discount compared to its earnings and book value.
In comparison to its peers, Pace E-Commerce stands out favorably. For instance, Avenue Supermarts Ltd. has a PE ratio of 100.87 and an EV to EBITDA of 60.98, while Trent Ltd. shows a PE of 132.74 and an EV to EBITDA of 74.98, both categorized as very expensive. This stark contrast highlights Pace E-Commerce's relative valuation strength within the e-retail sector. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -30.65% compared to the Sensex's 5.57%, further reinforcing the notion that it may be undervalued in the current market environment.