Is Datamatics Glob. overvalued or undervalued?

As of 7 August 2025, Datamatics Global's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently assessed as overvalued, with a PE ratio of 35.01, a Price to Book Value of 4.68, and an EV to EBITDA ratio of 24.49. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, TCS has a PE ratio of 22.38 and an EV to EBITDA of 15.76, while Infosys shows a PE of 21.9 and an EV to EBITDA of 14.36, both indicating more attractive valuations. The stark contrast in these ratios highlights Datamatics Global's overvaluation in the current market. Notably, the company's stock has outperformed the Sensex significantly over the past year, with a return of 90.64% compared to the Sensex's 1.45%, which may further influence investor perception despite the high valuation metrics.