Is Sun Retail overvalued or undervalued?

As of 6 November 2025, the valuation grade for Sun Retail has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued, especially when compared to its peers. Key ratios include a PE ratio of 41.70, an EV to EBITDA of 11.75, and a Price to Book Value of 0.40, which suggest that the stock is trading at a premium relative to its earnings and book value.
In comparison to its peers, Sun Retail's PE ratio is significantly lower than Avenue Supermarts and Trent, which have PE ratios of 97.24 and 105.01, respectively, but still reflects an expensive valuation in the context of the overall market. Notably, the company's return on equity (ROE) stands at a mere 0.96%, further emphasizing its overvaluation in light of its low profitability. Additionally, the stock has underperformed against the Sensex, with a year-to-date return of -44.16% compared to the Sensex's 6.62%, reinforcing the notion that Sun Retail is currently overvalued.