Is Happiest Minds overvalued or undervalued?

As of 4 August 2025, the valuation grade for Happiest Minds has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 45.73, an EV to EBITDA of 24.57, and a Price to Book Value of 5.78. In comparison to its peers, TCS has a PE ratio of 22.58 and Infosys has a PE ratio of 22.55, both indicating a more favorable valuation. Happiest Minds has shown a significant decline in stock performance, with a year-to-date return of -18.65% compared to a positive return of 3.69% for the Sensex. This underperformance, along with its high valuation metrics, supports the conclusion that the company is overvalued in the current market environment.