Is Ceinsys Tech overvalued or undervalued?

As of 16 June 2025, Ceinsys Tech's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. Despite this change, the company remains overvalued based on its current financial metrics. The PE ratio stands at 38.98, while the EV to EBITDA ratio is 30.16, both significantly higher than its peers. For comparison, TCS has a PE ratio of 26.05 and an EV to EBITDA of 18.22, while Infosys shows a PE of 25.25 and an EV to EBITDA of 16.46.
The company's valuation appears stretched, especially when considering its PEG ratio of 0.56, which suggests that while growth may be anticipated, the current price does not adequately reflect this potential. Additionally, Ceinsys Tech has underperformed in the year-to-date period with a return of -25.25% compared to a 4.68% gain in the Sensex, reinforcing the notion that it is overvalued in the current market context.