Is Esconet overvalued or undervalued?

As of 25 September 2025, Esconet's valuation grade has moved from attractive to fair, indicating a shift in its market perception. The company appears to be overvalued based on its current financial ratios, which include a PE ratio of 46.11, an EV to EBITDA of 36.83, and a PEG ratio of 2.12. In comparison, its peers such as TCS and Infosys have significantly lower PE ratios of 21.74 and 22.62, respectively, suggesting that Esconet's stock is trading at a premium relative to its industry counterparts.
The current valuation metrics, alongside the peer comparison, imply that Esconet's stock may not justify its price given its performance and returns. Notably, the company's stock has underperformed over the past year, with a return of -50.72%, contrasting sharply with the Sensex's decline of only -4.28%. This further reinforces the view that Esconet is overvalued in the current market environment.