Is CG-VAK Software overvalued or undervalued?

As of 14 August 2025, the valuation grade for CG-VAK Software has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued, particularly when considering its key financial ratios. The PE ratio stands at 12.79, the EV to EBITDA ratio is 8.31, and the PEG ratio is notably low at 0.39, suggesting that the stock is trading at a discount relative to its growth potential.
In comparison to its peers, CG-VAK Software's valuation metrics are compelling. For instance, TCS has a PE ratio of 22.19 and an EV to EBITDA of 15.63, while Infosys shows a PE of 22.05 and an EV to EBITDA of 14.46. These comparisons highlight CG-VAK's more favorable valuation, reinforcing the conclusion that it is undervalued. Despite recent challenges reflected in its year-to-date return of -20.17% compared to the Sensex's 3.15%, the long-term performance remains robust, with a 5-year return of 466.96%, suggesting potential for recovery and growth.