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 in its perceived value. The company appears overvalued, particularly when considering its P/E ratio of 25, which is significantly higher than its peer Amdocs Ltd. at 36.47 and EPAM Systems, Inc. at 22.01. Additionally, Globant's EV to EBITDA stands at 11.57, while Amdocs and EPAM show ratios of 23.48 and 11.68, respectively, further emphasizing its expensive valuation relative to peers.
Globant's recent performance has been notably poor, with a year-to-date return of -73.06%, compared to a positive return of 13.30% for the S&P 500, highlighting a stark underperformance in the market. The company’s ROCE of 11.47% and ROE of 8.86% also suggest that it may not be generating sufficient returns relative to its valuation, reinforcing the conclusion that it is overvalued in the current market context.