Is Cigniti Tech. overvalued or undervalued?

As of 25 September 2025, Cigniti Technologies has moved from a fair to attractive valuation grade, indicating a more favorable assessment of its market position. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 16.23, an EV to EBITDA of 11.50, and a PEG Ratio of 0.24, which suggests strong growth potential relative to its price.
In comparison to its peers, Cigniti's valuation metrics are notably lower; for instance, TCS has a PE Ratio of 21.74 and EV to EBITDA of 15.3, while Infosys shows a PE of 22.62. Cigniti's high ROCE of 43.15% and ROE of 22.74% further support its attractive valuation. Despite a recent decline in stock price relative to the Sensex, with a YTD return of -13.20% compared to the Sensex's 3.87%, the long-term performance remains robust, showcasing a 293.12% return over the past five years, reinforcing the case for its undervaluation.