Is Elnet Technolog overvalued or undervalued?

As of 13 June 2025, Elnet Technolog's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its current metrics, with a PE ratio of 7.93, an EV to EBITDA of 1.22, and a PEG ratio of 7.93. In comparison to its peers, TCS has a significantly higher PE ratio of 25.69 and an EV to EBITDA of 17.96, while Infosys shows a PE ratio of 24.91 and an EV to EBITDA of 16.23, further highlighting Elnet's relative overvaluation.
Despite a strong ROCE of 37.44% and a ROE of 11.23%, Elnet's financial ratios suggest that it is not positioned to justify its current price of 348.00, especially when compared to the performance of its peers in the software and consulting industry. Additionally, while Elnet has shown a solid return over the past three years at 133.95%, its year-to-date performance of -15.33% contrasts with the Sensex's positive return of 3.81%, reinforcing the notion that Elnet Technolog is currently overvalued.