Is Sun Retail overvalued or undervalued?

As of 17 October 2025, the valuation grade for Sun Retail has moved from expensive to fair, indicating a shift in its perceived value. The company is currently assessed as fairly valued. Key ratios include a PE ratio of 42.67, an EV to EBIT of 11.91, and a Price to Book Value of 0.41, which suggest that while the stock is not undervalued, it is not excessively priced compared to its peers.
In comparison to its peers, Avenue Supermarts and Trent are both categorized as very expensive, with PE ratios of 102.28 and 107.97, respectively. This positions Sun Retail more favorably within its industry. Despite recent underperformance, with a year-to-date return of -42.86% compared to a 7.44% gain in the Sensex, the current valuation metrics suggest that Sun Retail is reasonably priced in the context of its market environment.