Is VTEX (Cayman Islands) overvalued or undervalued?

As of 17 October 2025, the valuation grade for VTEX (Cayman Islands) has moved from very attractive to fair, indicating a shift in its perceived value. Based on the current metrics, VTEX appears to be overvalued, particularly when considering its P/E ratio of 79, which is significantly higher than the peer average of 68.19, and an EV to EBITDA ratio of 60.46 compared to the peer average of 28.51. Additionally, the PEG ratio stands at a low 0.25, suggesting that while growth expectations may be high, the current price does not reflect a favorable valuation.
In comparison to its peers, Model N, Inc. is deemed expensive with a P/E ratio of 1182.69, while Grid Dynamics Holdings, Inc. is considered fair with a P/E of 36.15. The notable outlier in this comparison is OneSpan, Inc., which is attractive with a P/E of 9.89. VTEX's stock has underperformed against the S&P 500, with a year-to-date return of -28.86% compared to the index's 13.30%, reinforcing the notion that the stock may be overvalued in its current state.