Is Citizen Infoline overvalued or undervalued?

As of 13 November 2025, the valuation grade for Citizen Infoline has moved from risky to does not qualify, indicating significant concerns about its financial health. The company appears to be overvalued, with a staggering PE ratio of 789.03 and an EV to EBIT of -165.67, which suggests that it is not generating positive earnings relative to its enterprise value. Additionally, the EV to Sales ratio stands at 28.13, further highlighting the disconnect between its market valuation and operational performance.
In comparison to its peers, Citizen Infoline's metrics are starkly unfavorable. For instance, TCS has a PE ratio of 22.34 and an EV to EBITDA of 15.7, while Infosys shows a PE of 22.78 and an EV to EBITDA of 14.95, both indicating a more sustainable valuation. The company's recent stock performance has been impressive, with a year-to-date return of 1242.96%, significantly outpacing the Sensex's 8.11% return; however, this does not mitigate the underlying valuation concerns.