Is Sun Retail overvalued or undervalued?

As of 3 November 2025, Sun Retail's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 41.70, an EV to EBITDA ratio of 11.75, and a Price to Book Value of 0.40. These metrics suggest that while the company is not undervalued, it is also not excessively priced compared to its peers.
In comparison to its industry peers, Sun Retail's valuation appears more reasonable, especially when contrasted with Avenue Supermarts and Trent, which are both categorized as very expensive with PE ratios of 98.98 and 105.78, respectively. Notably, Sun Retail's PEG ratio stands at 0.00, indicating no expected growth in earnings, which is a significant outlier in the current market context. Despite recent stock performance lagging behind the Sensex, with a year-to-date decline of 44.16% compared to the Sensex's gain of 7.47%, the current valuation reflects a more balanced outlook for potential investors.