Is Cybertech Sys. overvalued or undervalued?

As of 5 June 2025, the valuation grade for Cybertech Systems has moved from very attractive to attractive, indicating a shift in perception regarding its market position. The company is currently assessed as undervalued, given its strong performance metrics. Key ratios include a PE ratio of 16.19, an EV to EBITDA of 11.24, and a PEG ratio of 0.30, which suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Cybertech Systems stands out with a lower PE ratio than TCS (25.23) and Infosys (24.32), while maintaining a competitive EV to EBITDA ratio compared to HCL Technologies (16.52). The company's return on capital employed (ROCE) is exceptionally high at 69.95%, further reinforcing its undervaluation. Notably, Cybertech has outperformed the Sensex over the past year with a return of 21.03% compared to the Sensex's 7.60%, highlighting its strong market performance despite the recent valuation adjustment.