Is Infibeam Avenues overvalued or undervalued?

As of 9 October 2025, the valuation grade for Infibeam Avenues has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 25.22, which is higher than its peer TCS at 22.48, and the EV to EBITDA ratio of 17.11 also exceeds that of HCL Technologies at 14.78. Additionally, the PEG ratio of 4.48 suggests that the stock may be overvalued relative to its growth prospects.
In comparison to its peers, Infibeam Avenues shows weaker returns on capital with a ROCE of 6.54% and ROE of 5.96%, which are below industry standards. The recent stock performance has been disappointing, with a year-to-date return of -25.92%, contrasting sharply with the Sensex's gain of 5.16% over the same period. Given these factors, Infibeam Avenues appears to be overvalued in the current market context.