Is Globant SA overvalued or undervalued?

As of 17 October 2025, the valuation grade for Globant SA has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 25, which is significantly higher than the peer average of 14.44 for Globant SA, and its EV to EBITDA ratio of 11.57, compared to the industry benchmarks. Additionally, the Price to Book Value stands at 2.17, suggesting that the stock is trading at a premium relative to its book value.
In comparison to its peers, Amdocs Ltd. has a P/E ratio of 36.47, while EPAM Systems, Inc. shows a P/E of 22.01, both indicating that Globant's valuation is less attractive. The recent stock performance further highlights the valuation concerns, with Globant experiencing a year-to-date return of -73.06%, significantly underperforming the S&P 500's return of 13.30% in the same period. This stark contrast reinforces the notion that Globant SA is currently overvalued.