Is Epuja Spiritech overvalued or undervalued?

As of 20 June 2025, Epuja Spiritech's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current financial metrics. The PE ratio stands at 27.71, while the EV to EBITDA ratio is also at 28.33, both significantly higher than its peers. For comparison, Life Insurance has a PE ratio of 12.26 and Bajaj Finserv has an EV to EBITDA of 13.35, highlighting the premium Epuja Spiritech commands despite its lower return metrics, such as a ROE of 1.58% and a ROCE of 1.18%.
Given these ratios and the overall market context, Epuja Spiritech appears overvalued. Its stock has underperformed relative to the Sensex, with a year-to-date decline of 23.25% compared to the Sensex's gain of 5.46%. This trend reinforces the notion that the current valuation does not align with the company's financial performance and market conditions.