Is ABM Knowledge overvalued or undervalued?

As of 3 September 2025, the valuation grade for ABM Knowledge has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE Ratio of 22.71, an EV to EBIT of 12.16, and a Price to Book Value of 1.43, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, TCS has a PE Ratio of 22.76 and an EV to EBITDA of 16.04, while Infosys shows a PE Ratio of 22.53 and an EV to EBITDA of 14.79. These comparisons highlight that ABM Knowledge's valuation ratios are in line with its peers but still on the higher side, reinforcing the notion of overvaluation. Additionally, while ABM Knowledge has outperformed the Sensex over a three-year period with a return of 87.05% compared to the Sensex's 37.01%, its year-to-date performance of -6.29% suggests a potential correction in the near future.