Is VTEX (Cayman Islands) overvalued or undervalued?

As of 5 May 2025, the valuation grade for VTEX (Cayman Islands) has moved from fair to attractive. The company is currently considered undervalued, supported by a P/E ratio of 79, an EV to EBITDA of 60.46, and a PEG ratio of 0.25, indicating strong growth potential relative to its price. Notably, VTEX's ROCE stands at an impressive 30.29%, while its ROE is at 6.29%, suggesting effective capital utilization.
In comparison to peers, VTEX's P/E ratio of 79 is higher than Applied Digital Corp.'s risky valuation at -24.45 and A10 Networks, Inc.'s fair valuation at 28.77. The EV to EBITDA ratio of 60.46 also outpaces A10 Networks, which stands at 22.45. Despite some recent underperformance against the S&P 500 over the past year, VTEX has shown resilience with a year-to-date return of 10.36%, significantly outperforming the index's 2.44%.