Is Elnet Technolog overvalued or undervalued?

As of 13 June 2025, Elnet Technolog's valuation grade has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 7.93, an EV to EBITDA of 1.22, and a PEG ratio also at 7.93, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Elnet Technolog's PE ratio is significantly lower than that of TCS, which stands at 25.69, and Infosys at 24.91, both of which are considered attractive. Additionally, HCL Technologies, also attractive, has a PE ratio of 26.44. The disparity in valuation metrics highlights Elnet's relative overvaluation in the current market context. Despite a strong historical performance, including a 480% return over the past decade, recent trends show a decline in stock performance compared to the Sensex, further reinforcing the notion of overvaluation.