Is 3i Infotech overvalued or undervalued?

As of 1 October 2025, the valuation grade for 3i Infotech has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued, with a PE ratio of 9.46, a Price to Book Value of 1.46, and an EV to EBITDA of 14.47. These ratios suggest that the stock is trading at a lower valuation compared to its earnings and book value.
In comparison to its peers, 3i Infotech's PE ratio is substantially lower than TCS at 21.4 and Infosys at 22.03, which highlights its undervaluation in the market. Additionally, the PEG ratio of 0.06 further emphasizes the potential for growth relative to its price. While the stock has faced challenges recently, with a year-to-date return of -18.04% compared to the Sensex's 3.64%, the current valuation metrics suggest that 3i Infotech presents a compelling investment opportunity.