Is Vivid Mercantile overvalued or undervalued?

Aug 13 2025 08:04 AM IST
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As of August 12, 2025, Vivid Mercantile is considered overvalued with a PE ratio of 30.26 and a negative ROCE of -7.55%, despite outperforming the Sensex over three years, leading to a valuation downgrade from very expensive to risky.
As of 12 August 2025, the valuation grade for Vivid Mercantile has moved from very expensive to risky. The company is currently assessed as overvalued, with a PE ratio of 30.26, an EV to EBITDA ratio of 50.13, and a ROE of 3.99%. In comparison, peers such as DLF and Lodha Developers are classified as very expensive, with PE ratios of 39.1 and 41, respectively, indicating that Vivid Mercantile's valuation remains high relative to its peers despite the downgrade.

The company's financial metrics reveal significant challenges, including a negative ROCE of -7.55% and a PEG ratio of 0.00, suggesting that growth prospects are not being adequately priced in. Additionally, while Vivid Mercantile has outperformed the Sensex over the past three years with a return of 92.68% compared to 34.93%, its recent stock performance has been lackluster, with a 1-week decline of 4.91%. Overall, these factors contribute to the conclusion that Vivid Mercantile is overvalued in the current market environment.
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