Is Genpact Ltd. overvalued or undervalued?

As of 6 February 2025, the valuation grade for Genpact Ltd. has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 14, an EV to EBITDA of 10.29, and a ROE of 21.71%.
When compared to peers, Genpact's P/E ratio is lower than Medpace Holdings, Inc., which has a P/E of 20.61, and WEX, Inc., at 20.11, suggesting that Genpact may be undervalued relative to these competitors. However, its valuation aligns with the broader market context, as evidenced by its recent stock performance, which has outpaced the S&P 500 over the past year but lagged in the longer term. Overall, Genpact appears to be fairly valued in the current market environment.