Is Sun Retail overvalued or undervalued?

As of 27 October 2025, the valuation grade for Sun Retail has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 43.64, an EV to EBIT of 12.06, and a Price to Book Value of 0.42. In comparison to its peers, Avenue Supermarts and Trent are both classified as very expensive, with PE ratios of 101.43 and 107.65, respectively, highlighting Sun Retail's relatively better valuation position within the industry.
Despite the fair valuation, Sun Retail has experienced significant underperformance compared to the Sensex, with a year-to-date return of -41.56% against the Sensex's 8.50%. This stark contrast in performance may indicate market skepticism about the company's growth prospects, despite its current valuation metrics suggesting it is not overvalued.