Is Birlasoft Ltd overvalued or undervalued?

As of 3 September 2025, Birlasoft Ltd's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a Price to Earnings (PE) ratio of 22.22, a Price to Book Value of 3.02, and an EV to EBITDA ratio of 13.25. These figures suggest that while the company maintains a solid financial position, it is not significantly undervalued compared to its peers.
In comparison to notable competitors, TCS has an attractive valuation with a PE ratio of 22.76 and an EV to EBITDA of 16.04, while Infosys is also fairly valued with a PE of 22.53 and an EV to EBITDA of 14.79. Birlasoft's PEG ratio stands at 0.00, indicating no growth expectations priced into the stock, which is a notable outlier compared to its peers. Additionally, the company's recent stock performance shows a significant decline of 32.42% year-to-date, contrasting with a 3.11% gain in the Sensex, reinforcing the notion that the stock may be facing challenges despite its fair valuation.