Is VTEX (Cayman Islands) overvalued or undervalued?

As of 7 November 2025, the valuation grade for VTEX (Cayman Islands) moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 79, a Price to Book Value of 4.96, and an EV to EBITDA ratio of 60.46. In comparison to peers, VTEX's P/E ratio is significantly lower than that of Model N, Inc., which stands at 1182.69, while Grid Dynamics Holdings, Inc. has a much lower P/E of 36.15, reinforcing VTEX's relative positioning in the market.
Despite the high P/E ratio, the PEG ratio of 0.25 suggests that the stock may be undervalued relative to its growth potential. The company's ROCE of 30.29% indicates strong capital efficiency, although its ROE of 6.29% is relatively modest. While specific return data is not available for VTEX, the overall market sentiment appears to support a fair valuation, aligning with its recent performance against the S&P 500.