Is Digitide Solutio overvalued or undervalued?

As of 7 August 2025, the valuation grade for Digitide Solutio has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 20.77, an EV to EBITDA of 8.33, and a ROE of 22.55%. In comparison to its peers, Firstsour.Solu. has a significantly higher PE ratio of 42.07, while Xchanging Sol. shows a lower PE at 18.88, reinforcing Digitide's relative positioning in the market.
Despite the recent decline in stock performance, with a 1-week return of -9.14% compared to the Sensex's -0.69%, the company's strong ROCE of 39.26% suggests robust operational efficiency. Overall, while Digitide Solutio is fairly valued, its valuation metrics indicate it may not be as attractive as some of its peers in the commercial services sector.