Is California Soft. overvalued or undervalued?

As of 1 July 2025, California Soft. has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its current financial metrics. Key ratios include a PE Ratio of 27.44, an EV to EBITDA of 16.68, and a PEG Ratio of 0.26, which suggests that while the growth potential is strong, the current price may not justify the valuation.
In comparison to its peers, California Soft.'s PE Ratio is higher than TCS at 25.56 and Infosys at 25.01, both of which are rated more favorably. Additionally, California Soft.'s EV to EBITDA is lower than TCS's 17.86 but comparable to Infosys's 16.3. Despite a strong recent performance, with a year-to-date return of 82.78% compared to the Sensex's 7.11%, the valuation metrics indicate that the stock is currently overvalued relative to its peers and growth prospects.