Is Datamatics Glob. overvalued or undervalued?

As of 24 July 2025, the valuation grade for Datamatics Global has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE ratio of 29.52, an EV to EBITDA ratio of 22.19, and a Price to Book Value of 3.86, all of which are significantly higher than its peers. For instance, TCS shows a PE ratio of 23.13 and EV to EBITDA of 16.31, while Infosys has a PE ratio of 23.67 and EV to EBITDA of 15.57, highlighting Datamatics' premium valuation compared to these industry leaders.
In terms of performance, Datamatics has outperformed the Sensex over various time frames, with a year-to-date return of 39.25% compared to the Sensex's 5.18%. This strong performance may suggest investor confidence, but the high valuation ratios imply that the stock may not offer much upside potential at current levels. Overall, the combination of elevated valuation metrics and peer comparisons supports the conclusion that Datamatics Global is overvalued in the current market environment.