Is Birlasoft Ltd overvalued or undervalued?

As of 8 August 2025, Birlasoft Ltd's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 21.85, an EV to EBITDA of 12.98, and a dividend yield of 1.75%. Compared to peers, TCS has a slightly higher PE ratio of 22.28 and an EV to EBITDA of 15.69, while Infosys shows a PE of 21.71 and an EV to EBITDA of 14.23, suggesting that Birlasoft is in line with its industry but lacks the appeal of its more attractive peers.
The company's recent stock performance has been underwhelming, with a year-to-date return of -33.66%, significantly lagging behind the Sensex's positive return of 2.20% during the same period. This underperformance, along with its current valuation metrics, reinforces the conclusion that Birlasoft Ltd is fairly valued in the current market environment.