Is Esconet overvalued or undervalued?

As of 26 August 2025, Esconet's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 34.93, an EV to EBITDA ratio of 26.94, and a PEG ratio of 1.61. In comparison to its peers, TCS is rated attractive with a PE of 23.18, while Infosys is also fairly valued with a PE of 23.31, highlighting that Esconet's valuation is on the higher end relative to these competitors.
Despite the fair valuation, Esconet has underperformed significantly with a year-to-date return of -47.06%, contrasting sharply with the Sensex's positive return of 4.51% during the same period. This underperformance, combined with its elevated valuation ratios compared to peers, suggests that while Esconet is not overvalued, it may not present a compelling investment opportunity at this time.