Is Innovana Think. overvalued or undervalued?

As of 13 June 2025, the valuation grade for Innovana Think. has moved from expensive to very expensive. This indicates a significant concern regarding its current valuation, suggesting that the company is overvalued. Key ratios reveal a PE Ratio of 18.82, an EV to EBIT of 17.61, and an EV to EBITDA of 15.36, which are relatively high compared to its peers.
In comparison, TCS and Infosys have PE Ratios of 25.69 and 24.91, respectively, indicating that Innovana Think. is trading at a lower multiple despite its very expensive classification. The PEG Ratio of 2.42 also suggests that the stock may not be justified at its current price given its growth prospects. Additionally, while Innovana Think. has shown a strong return of 6.66% over the past week compared to a -1.30% return for the Sensex, its year-to-date performance of -5.3% against a 3.81% rise in the Sensex further reinforces the notion that the stock is overvalued.