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 market position. The company is currently considered undervalued, particularly in light of its key financial ratios. The PE ratio stands at 43.84, while the EV to EBITDA ratio is 34.82, and the PEG ratio is 2.01, suggesting that despite a high valuation, growth expectations may justify the current price.
When comparing Esconet to its peers, TCS has a significantly lower PE ratio of 22.03, and Infosys shows a PE of 22.53, highlighting Esconet's premium valuation. However, its ROCE of 19.44% and ROE of 10.28% indicate strong operational efficiency. Notably, Esconet's recent stock performance has underperformed the Sensex, with a year-to-date decline of 33.57% compared to the Sensex's gain of 9.09%, reinforcing the notion that the stock may be undervalued relative to its potential.