Is ExlService Holdings, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for ExlService Holdings, Inc. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 37, an EV to EBITDA ratio of 23.67, and a PEG ratio of 1.84. In comparison to peers, FactSet Research Systems, Inc. has a P/E of 28.40, while Akamai Technologies, Inc. shows a P/E of 22.51, suggesting that ExlService is trading at a premium relative to these competitors.
Despite recent underperformance against the S&P 500, with a YTD return of -4.51% compared to the index's 12.22%, the long-term perspective is more favorable, as the company has achieved a remarkable 226.05% return over the past five years. This performance, combined with strong financial ratios, reinforces the notion that ExlService Holdings, Inc. is undervalued in the current market context.