Is Esconet overvalued or undervalued?

As of 24 October 2025, Esconet's valuation grade has moved from fair to attractive, indicating a more favorable assessment of its worth. The company appears to be undervalued, especially when considering its key financial ratios such as a PE Ratio of 43.84, EV to EBITDA of 34.82, and ROCE of 19.44%. In comparison to its peers, TCS has a significantly lower PE Ratio of 22.03, while Infosys stands at 22.53, highlighting Esconet's relatively high valuation metrics.
Despite its attractive grade, Esconet's stock performance has lagged behind the Sensex, with a year-to-date decline of 33.57% compared to the Sensex's gain of 9.09%. This discrepancy suggests that while the company may be fundamentally strong, market sentiment has not yet aligned with its intrinsic value, reinforcing the conclusion that Esconet is currently undervalued in the market.