Is IRIS Business overvalued or undervalued?

As of 17 June 2025, the valuation grade for IRIS Business has moved from very expensive to expensive. The company appears to be overvalued at its current price of 243.35, especially when considering its PE ratio of 38.36, an EV to EBITDA of 23.59, and a PEG ratio of 0.93. In comparison, peers such as Firstsource Solutions, which is rated attractive, has a significantly higher PE ratio of 46.45, while eClerx Services, rated fair, has a lower PE ratio of 32.94.
Despite the recent downturn in stock performance, with a year-to-date return of -46.83 compared to the Sensex's 4.41, the high valuation ratios suggest that IRIS Business is not a compelling investment at this time. The company's strong ROCE of 69.45% and ROE of 17.22% indicate operational efficiency, yet these metrics do not justify the current valuation levels, reinforcing the conclusion that IRIS Business is overvalued.