Is Infosys overvalued or undervalued?

As of 2 June 2025, the valuation grade for Infosys has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its metrics. Key ratios include a PE ratio of 24.32, an EV to EBITDA of 15.83, and a ROE of 27.88%.
When compared to peers, TCS has a higher PE ratio of 25.23 and an EV to EBITDA of 17.63, while HCL Technologies also shows a strong PE of 25.52. This suggests that Infosys is in line with its peers but does not exhibit the same level of attractiveness as some of them. Additionally, while Infosys has underperformed the Sensex year-to-date with a return of -16.27% compared to the Sensex's 5.60%, its solid ROCE of 51.30% indicates strong operational efficiency.