Is VTEX (Cayman Islands) overvalued or undervalued?

As of 8 September 2025, the valuation grade for VTEX (Cayman Islands) moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears to be undervalued, especially when considering its PEG ratio of 0.25, which suggests strong growth potential relative to its price, alongside a P/E ratio of 79 and an EV to EBITDA ratio of 60.46.
In comparison to peers, VTEX's P/E ratio of 79 is significantly lower than that of Model N, Inc. at 1182.69, while PDF Solutions, Inc. has a much higher EV to EBITDA of 129.06. This positions VTEX favorably within its industry, particularly given its return on capital employed (ROCE) of 30.29%. Despite a challenging year with a year-to-date return of -21.05% compared to the S&P 500's 12.22%, VTEX's three-year return of 19.23% indicates potential for recovery and growth.