Is VTEX (Cayman Islands) overvalued or undervalued?

As of 7 November 2025, the valuation grade for VTEX (Cayman Islands) moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 79, an EV to EBITDA of 60.46, and a PEG ratio of 0.25, which suggests growth potential relative to its price. In comparison, peers like Model N, Inc. have a significantly higher P/E of 1182.69, while Grid Dynamics Holdings, Inc. shows a more favorable P/E of 36.15, indicating that VTEX is competitively positioned within its industry.
Despite the fair valuation, VTEX has underperformed compared to the S&P 500, with a year-to-date return of -33.45% versus the index's positive return of 14.40%. This stark contrast highlights potential concerns regarding investor sentiment and market perception, even as the valuation metrics suggest a more balanced outlook.