Is Esconet overvalued or undervalued?

As of 15 October 2025, Esconet's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, particularly when compared to its peers. Key ratios reveal a PE Ratio of 42.80, an EV to EBITDA of 33.90, and a PEG Ratio of 1.97.
In comparison, TCS, which is also rated attractive, has a significantly lower PE Ratio of 21.36 and an EV to EBITDA of 8.25, while Infosys, rated fair, has a PE Ratio of 22.46 and an EV to EBITDA of 14.74. These comparisons highlight Esconet's relatively high valuation metrics, yet its attractive grade suggests that the market may be underestimating its growth potential. Notably, Esconet's stock has underperformed against the Sensex, with a year-to-date return of -35.15% compared to the Sensex's 7.10%, reinforcing the notion that it may be undervalued in the current market environment.