Is Datamatics Glob. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Datamatics Global has moved from expensive to fair, indicating a more favorable assessment of its current market position. The company is currently fairly valued, with a PE ratio of 27.18, an EV to EBITDA of 18.22, and a PEG ratio of 2.40. These ratios suggest that while the company is not undervalued, it is also not excessively priced compared to its earnings potential.
In comparison to its peers, Datamatics Global's PE ratio is higher than that of TCS at 22 and Infosys at 21.9, both of which are categorized as attractive or fair. However, it is on par with HCL Technologies, which has a PE of 24.64, also rated as fair. Notably, Datamatics has outperformed the Sensex significantly over various periods, including a 60.24% return over the past year compared to the Sensex's 5.73%. This performance reinforces the notion that while the stock is fairly valued, its growth trajectory remains strong.