Is ABM Knowledge overvalued or undervalued?

As of 28 August 2025, the valuation grade for ABM Knowledge has moved from fair to expensive, indicating a shift in its market perception. The company appears to be overvalued based on its current metrics, with a PE ratio of 21.97, an EV to EBITDA of 9.51, and a PEG ratio of 19.35. These ratios suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, TCS has a PE ratio of 22.74 and an EV to EBITDA of 16.03, while Infosys shows a PE of 22.86 and an EV to EBITDA of 15.01, both of which highlight that ABM Knowledge is priced similarly or higher despite lower growth prospects. Additionally, ABM Knowledge's recent stock performance has lagged behind the Sensex, with a year-to-date return of -9.37% compared to the Sensex's 2.48%, reinforcing the notion that the stock may be overvalued in the current market environment.