Is Covance Softsol overvalued or undervalued?

As of 27 October 2025, Covance Softsol's valuation grade has moved from very attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial ratios, including a PE ratio of 13.98, a price to book value of 0.14, and an EV to EBITDA of -11.36. These figures suggest that while the company is not excessively priced, it also does not present a compelling investment opportunity at this time.
In comparison with its peers, Covance Softsol's PE ratio is significantly lower than that of TCS at 22.19 and Infosys at 22.23, both of which are considered attractive. This indicates that Covance Softsol may be undervalued relative to these industry leaders. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-month return of 45.43% compared to the Sensex's 5.41%, which may reflect a positive market sentiment despite the overall valuation being fair.