Is Esconet overvalued or undervalued?

As of 18 July 2025, Esconet's valuation grade has moved from fair to attractive, indicating a more favorable outlook for the company. The analysis suggests that Esconet is currently undervalued. Key ratios include a PE Ratio of 39.98, an EV to EBITDA of 33.92, and a ROCE of 27.55%.
In comparison with peers, TCS has a PE Ratio of 23.42 and an EV to EBITDA of 16.52, while Infosys stands at a PE of 24.67 and an EV to EBITDA of 16.07. These comparisons highlight that Esconet's valuation metrics are significantly higher than its peers, suggesting potential for growth. Notably, Esconet's stock has underperformed relative to the Sensex, particularly year-to-date, where it has declined by 39.41% compared to the Sensex's 5.60% increase, reinforcing the undervaluation narrative.