Is Sun Retail overvalued or undervalued?

As of 13 November 2025, the valuation grade for Sun Retail has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 39.76, an EV to EBIT ratio of 11.44, and a Price to Book Value of 0.38. These ratios suggest that while the company has a relatively high PE ratio compared to its peers, its other valuation metrics indicate a more modest valuation.
In comparison to its peers, Sun Retail's PE ratio is significantly lower than Avenue Super's 96.56 and Trent's 94.73, both of which are considered very expensive. Additionally, Sun Retail's EV to EBITDA ratio of 11.44 is more favorable than the industry average, but still reflects a cautious outlook. The company's recent stock performance has been underwhelming, with a year-to-date return of -46.75%, contrasting sharply with the Sensex's gain of 8.11% over the same period, reinforcing the notion that Sun Retail may be struggling to attract investor confidence despite its fair valuation status.