Is VTEX (Cayman Islands) overvalued or undervalued?

As of 3 October 2025, the valuation grade for VTEX (Cayman Islands) has moved from attractive to fair. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 79, an EV to EBITDA of 60.46, and a Price to Book Value of 4.96, which are significantly higher than peers such as Grid Dynamics Holdings, Inc. with a P/E of 36.15 and EV to EBITDA of 13.08, indicating a relative overvaluation.
Additionally, while VTEX has shown a positive return of 10.25% over the past month compared to the S&P 500's 4.15%, its year-to-date return of -25.13% starkly contrasts with the S&P 500's 14.18%, reinforcing the notion that the stock may be struggling despite recent short-term gains.