Is Blue Cloud Soft. overvalued or undervalued?

As of 23 July 2025, the valuation grade for Blue Cloud Soft. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently deemed undervalued. Key ratios include a PE ratio of 30.83, an EV to EBITDA of 20.73, and a PEG ratio of 0.84, which suggests that the stock is priced favorably relative to its growth prospects.
When compared to peers, Blue Cloud Soft. stands out with a higher PE ratio than TCS at 23.35 and Infosys at 24.48, while its EV to EBITDA is also more favorable than that of HCL Technologies at 15.25. Despite recent underperformance, with a year-to-date return of -68.16% compared to the Sensex's 5.87%, the strong ROE of 36.35% and ROCE of 30.98% reinforce the company's potential for recovery and growth, supporting the conclusion that it is currently undervalued.