Is Fidel Softech overvalued or undervalued?

As of 1 October 2025, the valuation grade for Fidel Softech has moved from attractive to very attractive. The company is currently considered undervalued based on its strong financial metrics and favorable peer comparison. Key ratios include a PE ratio of 22.64, an EV to EBITDA of 15.56, and a PEG ratio of 0.39, indicating solid earnings growth potential relative to its price.
In comparison to its peers, Fidel Softech's valuation metrics are competitive, with TCS having a PE of 21.4 and Infosys at 22.03, both of which are in less favorable valuation categories. Additionally, the company's return on capital employed (ROCE) stands at an impressive 72.79%, further supporting its undervaluation narrative. While the stock has underperformed the Sensex year-to-date with a decline of 7.52%, its one-year return of 25.24% outpaces the index, suggesting potential for future growth.