Is CI&T, Inc. (Brazil) overvalued or undervalued?

As of 13 August 2025, the valuation grade for CI&T, Inc. (Brazil) has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, particularly when considering its P/E ratio of 23, which is higher than the industry average, and a PEG ratio of 0.94, suggesting potential for growth relative to its price. Additionally, the EV to EBITDA ratio stands at 11.22, which further supports the notion of an attractive valuation compared to peers.
In terms of peer comparison, CI&T, Inc. has a P/E ratio of 35.29, significantly higher than MediaAlpha, Inc. at 14.78 and Rimini Street, Inc. at 12.04, indicating that CI&T is perceived to have better growth prospects. However, despite its strong valuation metrics, the company has underperformed against the S&P 500 in recent periods, with a YTD return of -6.75% compared to the S&P 500's 12.22%, and a 1Y return of -14.37% versus 17.14% for the index, which may reflect broader market challenges.