Is Fidel Softech overvalued or undervalued?

As of 28 July 2025, the valuation grade for Fidel Softech has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company is currently assessed as undervalued. Key ratios supporting this assessment include a PE Ratio of 27.51, an EV to EBITDA of 19.44, and a PEG Ratio of 0.52, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to its peers, Fidel Softech's valuation stands out; for instance, TCS has a PE Ratio of 22.61 and an EV to EBITDA of 15.93, while Infosys shows a PE of 23.1 and an EV to EBITDA of 15.18. These comparisons further reinforce the notion that Fidel Softech is undervalued in its sector. Additionally, the company's impressive ROCE of 72.79% and ROE of 20.46% highlight its strong financial performance. Despite recent stock performance lagging behind the Sensex over the past month and year-to-date, the long-term return of 68.41% over the past year positions it favorably in the market.