Is Genpact Ltd. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Genpact Ltd. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears to be fairly valued based on its P/E ratio of 14, which is in line with its peer ICON plc at 14.64, and significantly lower than Medpace Holdings, Inc. at 33.13. Additionally, Genpact's EV to EBITDA ratio of 10.29 is competitive compared to the industry average, suggesting it is not overvalued in this regard.
In comparison to its peers, Genpact's ROCE of 22.82% and ROE of 21.71% reflect strong operational efficiency and profitability. While the stock has underperformed against the S&P 500 over various periods, particularly in the 3-year and 5-year returns, where it returned -8.16% and 6.69% respectively compared to the S&P's 70.41% and 96.61%, the recent valuation suggests it may present a more attractive investment opportunity moving forward.