Is Sun Retail overvalued or undervalued?

As of 14 October 2025, the valuation grade for Sun Retail has moved from fair to expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 40.73, an EV to EBIT of 11.59, and a ROE of 0.96%. In comparison to its peers, Avenue Supermarts and Trent are both categorized as very expensive with PE ratios of 100.16 and 103.65, respectively, highlighting the relative overvaluation of Sun Retail.
The company's performance has been notably poor, with a year-to-date return of -45.45% compared to a Sensex return of 4.98%. This significant underperformance, combined with its high valuation ratios, reinforces the conclusion that Sun Retail is overvalued in the current market environment.