Is Datamatics Glob. overvalued or undervalued?

As of 23 October 2025, the valuation grade for Datamatics Global has moved from fair to expensive. The company is currently considered overvalued based on its financial ratios, with a PE Ratio of 29.06, an EV to EBITDA of 20.21, and a Price to Book Value of 3.89. When compared to peers, TCS has a more attractive PE Ratio of 22.12, while Infosys stands at 22.58, indicating that Datamatics is trading at a premium relative to these competitors.
The company's financial performance metrics, including a ROCE of 15.24% and ROE of 13.06%, suggest solid profitability; however, the high valuation ratios raise concerns about sustainability. Additionally, Datamatics has outperformed the Sensex significantly over various time frames, with a YTD return of 40.37% compared to the Sensex's 8.21%. This strong performance may not justify its current valuation, reinforcing the conclusion that Datamatics Global is overvalued.