Is ABM Knowledge overvalued or undervalued?

As of 24 July 2025, the valuation grade for ABM Knowledge has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial ratios, with a PE Ratio of 24.38, an EV to EBIT of 13.53, and a PEG Ratio of 21.48. These figures suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, ABM Knowledge's PE Ratio is higher than TCS at 23.13 and Infosys at 23.67, both of which are rated more favorably in terms of valuation. Additionally, the EV to EBITDA ratio of 11.15 for ABM Knowledge is lower than that of TCS (16.31) and Infosys (15.57), indicating that the market may be pricing in excessive growth expectations for ABM Knowledge. Despite recent stock performance showing a 12.62% return over the past year compared to the Sensex's 2.54%, the overall valuation metrics suggest that ABM Knowledge is not a compelling investment at its current price.