Is Sun Retail overvalued or undervalued?

As of 1 October 2025, the valuation grade for Sun Retail has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 6.98, an EV to EBIT of 12.06, and an EV to Sales of 0.28, which indicate a relatively low valuation compared to its peers.
In comparison to its industry peers, Sun Retail's PE Ratio of 6.98 stands in stark contrast to Avenue Supermarts and Trent, which have PE Ratios of 106.9 and 108.49, respectively, both categorized as very expensive. Despite recent underperformance, with a year-to-date return of -41.56% compared to the Sensex's 3.64%, the current valuation suggests that Sun Retail is positioned more attractively relative to its high-flying competitors.