Is Globant SA overvalued or undervalued?

As of 18 June 2025, the valuation grade for Globant SA has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 25, an EV to EBITDA of 11.57, and a ROCE of 11.47%. In comparison to peers, SS&C Technologies Holdings, Inc. has a P/E of 23.55 and an EV to EBITDA of 11.01, while EPAM Systems, Inc. shows a P/E of 22.32 and an EV to EBITDA of 12.35.
Despite the recent grade change indicating a fair valuation, Globant's stock has underperformed significantly compared to the S&P 500, with a year-to-date return of -58.76% versus the S&P 500's 2.44%. This stark contrast suggests that while the valuation may appear fair, the market sentiment and performance have not aligned positively for Globant SA.