Is IRIS Business overvalued or undervalued?

As of 23 June 2025, the valuation grade for IRIS Business has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 38.20, an EV to EBITDA of 23.49, and a ROCE of 69.45%. In comparison, peers such as Firstsource Solutions, which has a PE ratio of 45.26 and an EV to EBITDA of 23.95, and eClerx Services, with a PE ratio of 31.39 and an EV to EBITDA of 20.19, highlight that IRIS Business is trading at a premium relative to some competitors.
Despite a strong historical performance, with a 5-year return of 1356.43% compared to the Sensex's 132.07%, the recent YTD decline of 47.05% suggests that the market is reassessing its value. Given the high valuation ratios and the peer comparison, IRIS Business appears to be overvalued in the current market environment.