Is IRIS Business overvalued or undervalued?

As of 23 May 2025, the valuation grade for IRIS Business has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 40.34, an EV to EBITDA of 24.96, and a ROCE of 69.45%.
In comparison to its peers, IRIS Business has a similar PEG ratio of 0.98 to that of its competitor, which suggests that while growth expectations are high, the valuation remains steep. The stock has underperformed relative to the Sensex over the year, with a return of 21.19% compared to the Sensex's 7.59%, which may indicate that despite the high valuation, the market has recognized its growth potential.