Is Cigniti Tech. overvalued or undervalued?

As of 8 August 2025, the valuation grade for Cigniti Tech. has moved from fair to attractive, indicating a shift in perception regarding its value. The company is currently considered undervalued. Key ratios include a PE ratio of 16.07, an EV to EBITDA ratio of 11.38, and a PEG ratio of 0.23, all of which suggest that the stock is trading at a favorable valuation compared to its earnings growth potential.
In comparison to its peers, Cigniti Tech. shows a more attractive valuation than TCS, which has a PE ratio of 22.28, and Infosys, with a PE ratio of 21.71. Additionally, HCL Technologies is also valued attractively with a PE of 23.6. Notably, Cigniti Tech. has a significantly lower PEG ratio, indicating better growth prospects relative to its price. While the stock has underperformed the Sensex in the short term, it has shown strong returns over the longer term, with a 5-year return of 469.81% compared to the Sensex's 109.93%.