Is CG-VAK Software overvalued or undervalued?

As of 14 August 2025, CG-VAK Software has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of 12.79, an EV to EBITDA of 8.31, and a PEG ratio of 0.39, indicating strong growth potential relative to its price. In comparison to its peers, TCS has a PE ratio of 22.19 and Infosys has a PE of 22.05, highlighting CG-VAK's favorable valuation metrics.
The company's return on capital employed (ROCE) stands at 19.38%, and its return on equity (ROE) is at 12.95%, both of which are solid indicators of operational efficiency. Despite a challenging year with a YTD return of -20.17%, CG-VAK's long-term performance remains impressive, with a 5-year return of 466.96%, significantly outpacing the Sensex's 112.79%. This reinforces the view that CG-VAK Software is currently undervalued in the market.