Is ISL Consulting overvalued or undervalued?

As of 17 October 2025, the valuation grade for ISL Consulting has moved from risky to very expensive. This indicates a significant shift in perception regarding the company's valuation. Based on the analysis, ISL Consulting is deemed overvalued. The company has a PE ratio of -36.07, an EV to EBITDA ratio of -34.33, and a Price to Book Value of 5.07, all of which suggest that the company is not generating positive earnings and is trading at a high multiple relative to its book value.
When compared to its peers, ISL Consulting stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 38.21, while Life Insurance boasts a much more attractive PE of 11.49. Additionally, ISL's negative ROE of -14.07% and ROCE of -13.78% further highlight its struggles in generating returns compared to competitors. Despite a recent outperformance against the Sensex over the past week and month, the long-term returns show that ISL Consulting has underperformed the index over the last year and three years, reinforcing the notion that it is currently overvalued.