Is Pace E-Commerce overvalued or undervalued?

As of 1 October 2025, the valuation grade for Pace E-Commerce has moved from fair to attractive, indicating a more favorable assessment of its financial standing. The company is currently considered undervalued, especially when compared to its peers in the e-retail sector. Key ratios include a PE ratio of 15.18, an EV to EBITDA of 14.41, and a PEG ratio of 0.39, all of which suggest that the company is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Pace E-Commerce stands out with a significantly lower PE ratio than Avenue Supermarts and Trent, which are both classified as very expensive with PE ratios of 106.9 and 108.49, respectively. Additionally, while Pace E-Commerce has an EV to EBITDA ratio of 14.41, its peers exhibit much higher valuations, reinforcing the notion that Pace is undervalued. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -33.83% compared to the Sensex's 3.64%, the fundamental metrics suggest a strong potential for recovery and growth.