Is Cigniti Tech. overvalued or undervalued?

As of 30 May 2025, Cigniti Tech's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 20.46, an EV to EBITDA of 14.21, and a PEG ratio of 0.64, which suggests that the stock is priced reasonably in relation to its growth potential.
When compared to peers, Cigniti Tech's PE ratio is lower than TCS, which has a PE of 25.23, and Infosys at 24.32, both of which are rated attractive. However, it is on par with HCL Technologies, which also has an attractive rating but a higher PE of 25.52. Notably, Cigniti Tech has demonstrated strong performance with a ROCE of 43.14% and a ROE of 22.73%. Recent stock performance shows that Cigniti Tech has outperformed the Sensex over the past year, returning 22.63% compared to the Sensex's 7.64%, reinforcing its competitive position in the market.