Is Pace E-Commerce overvalued or undervalued?

As of 23 October 2025, the valuation grade for Pace E-Commerce has moved from fair to expensive. Based on the analysis, the company is currently overvalued. The PE ratio stands at 19.67, while the EV to EBITDA ratio is 17.89, and the PEG ratio is notably low at 0.51, indicating a potential disconnect between growth expectations and current pricing.
In comparison to peers, Pace E-Commerce's valuation metrics are significantly lower than those of Avenue Supermarts and Trent, which have PE ratios of 101.64 and 107.5, respectively. However, despite these high valuations in the peer group, Pace E-Commerce's own ratios suggest it is not justified at its current price point. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -14.24% compared to the Sensex's 8.21%, reinforcing the notion that it is overvalued in the current market context.