Is Birlasoft Ltd overvalued or undervalued?

As of 17 July 2025, the valuation grade for Birlasoft Ltd has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 23.24, an EV to EBITDA of 14.71, and a ROCE of 35.42%.
In comparison to peers, TCS has a PE of 23.56 and EV to EBITDA of 16.62, while Infosys shows a PE of 24.61 and EV to EBITDA of 16.03. This suggests that Birlasoft Ltd is competitively priced within its industry. Despite a challenging year with a YTD return of -22.87% compared to the Sensex's 5.27%, the long-term performance over five years shows a significant gain of 298.57%, reinforcing the attractiveness of the stock at its current valuation.