Is Birlasoft Ltd overvalued or undervalued?

As of 19 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 based on its financial metrics. Key ratios include a PE Ratio of 21.96, an EV to EBITDA of 13.06, and a ROCE of 35.42%.
In comparison to peers, TCS has a slightly higher PE Ratio of 22.15 and an EV to EBITDA of 15.59, while Infosys is closely aligned with Birlasoft at a PE of 21.94 and an EV to EBITDA of 14.38. Despite a recent decline in stock performance, with a year-to-date return of -33.33% compared to a positive 4.49% for the Sensex, the company's fundamentals suggest it is fairly valued within its industry context.