Is V2 Retail overvalued or undervalued?

As of 31 October 2025, V2 Retail has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, as indicated by its high PE ratio of 105.44, a Price to Book Value of 24.47, and an EV to EBITDA ratio of 32.16. These metrics suggest that the stock is trading at a significant premium compared to its earnings and book value. In comparison to its peers, V2 Retail's valuation stands out, with Avenue Supermarts at a PE of 98.88 and Trent at a PE of 105.35, both also categorized as very expensive. Notably, while V2 Retail has a PEG ratio of 0.94, indicating potential growth relative to its price, the overall high valuation ratios suggest that the stock may not offer a favorable risk-reward profile at current levels. Despite its strong performance against the Sensex, with a 1-year return of 117.74% compared to the Sensex's 5.73%, the valuation metrics indicate that caution is warranted for potential investors.