Is BLS E-Services overvalued or undervalued?

As of 4 November 2025, the valuation grade for BLS E-Services has moved from fair to expensive, indicating that the company is overvalued. The current PE ratio stands at 33.25, while the EV to EBITDA ratio is 24.73, and the Price to Book Value is 3.81. These ratios suggest that the company's valuation metrics are significantly higher than those of its peers, such as TCS, which has a PE ratio of 21.51 and an EV to EBITDA of 8.36, and Infosys, with a PE ratio of 21.68 and an EV to EBITDA of 4.92.
In comparison to its industry peers, BLS E-Services appears to be overvalued, especially when considering its PEG ratio of 0.49, which is lower than that of TCS and Infosys, indicating that the growth prospects may not justify the high valuation. Furthermore, the company's stock has underperformed against the Sensex over the past year, with a return of -5.62% compared to the Sensex's 5.94%, reinforcing the notion that BLS E-Services is currently overvalued.