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. The P/E ratio stands at 79, significantly higher than the industry average of 68.19, while the EV to EBITDA ratio is also elevated at 60.46, compared to the peer average of 28.51. Additionally, the PEG ratio of 0.25 suggests potential growth, but it is overshadowed by the high valuation ratios.
In comparison to its peers, Model N, Inc. is deemed expensive with a P/E of 1182.69, while Grid Dynamics Holdings, Inc. is considered fair with a P/E of 36.15. The stark contrast in valuation metrics highlights VTEX's relatively high valuation despite its fair grade. Furthermore, VTEX 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 the current market environment.