Is VTEX (Cayman Islands) overvalued or undervalued?

As of 17 October 2025, the valuation grade for VTEX (Cayman Islands) moved from very attractive to fair. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 79, significantly higher than the peer average of approximately 68.19, while the EV to EBITDA ratio is 60.46 compared to the peer average of 28.51. Additionally, the PEG ratio of 0.25 suggests that the stock may be priced for growth, but the high P/E indicates a potential overvaluation relative to its earnings.
In comparison to its peers, Grid Dynamics Holdings, Inc. has a P/E ratio of 36.15 and an EV to EBITDA of 13.08, marking it as a more attractive option. Model N, Inc., on the other hand, is considered expensive with a P/E of 1182.69. VTEX's recent stock performance has lagged behind 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 not be a compelling investment at its current valuation.