Is Firstsour.Solu. overvalued or undervalued?

As of 6 November 2025, the valuation grade for Firstsour.Solu. has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 37.51, an EV to EBITDA of 25.94, and a Price to Book Value of 0.57, which suggests that the stock is trading below its intrinsic value relative to its assets.
In comparison to peers, eClerx Services has a PE ratio of 36.6 and an EV to EBITDA of 11.86, categorizing it as very expensive, while Digitide Solutions is rated fair with a PE of 17.17 and an EV to EBITDA of 7.68. The notable difference in valuation metrics highlights Firstsour.Solu.'s attractiveness within its industry. Additionally, despite a year-to-date decline of 6.73% compared to the Sensex's 6.62% gain, the company has shown remarkable long-term performance with a 3-year return of 240.30%, reinforcing its potential as an undervalued investment opportunity.