Is V2 Retail overvalued or undervalued?

As of 18 September 2025, V2 Retail's valuation grade has moved from fair to expensive, indicating a shift in its perceived market value. The company is currently considered overvalued. Key ratios highlight this assessment, with a PE ratio of 79.57, an EV to EBITDA of 24.98, and a Price to Book Value of 18.46, all of which are significantly elevated compared to industry norms.
In comparison to its peers, V2 Retail's PE ratio is lower than Avenue Supermarts at 114.41 and Trent at 115.57, both categorized as very expensive. However, V2 Retail's PEG ratio of 0.71 suggests that it may still have growth potential relative to its price. Notably, V2 Retail has outperformed the Sensex in recent periods, with a 1-year return of 58.77% compared to the Sensex's 0.08%, which may reflect market optimism despite the high valuation metrics.