Is California Soft. overvalued or undervalued?

As of 3 June 2025, the valuation grade for California Soft. has moved from very attractive to attractive. The company appears to be undervalued, given its current price of 10.66 compared to its peers. Notable ratios include a PE Ratio of 16.23, an EV to EBITDA of 9.54, and a PEG Ratio of 0.15, which indicates strong growth potential relative to its price.
In comparison to its peers, California Soft. has a lower PE Ratio than TCS at 25.23 and Infosys at 24.32, both of which are considered attractive and fair, respectively. Additionally, California Soft.'s EV to EBITDA ratio is significantly lower than that of HCL Technologies at 16.52, suggesting it may be undervalued in the context of its earnings potential. While the stock has underperformed against the Sensex over the past year, its strong long-term return of 95.31% over five years indicates solid growth prospects that could support its valuation.