Is Kairosoft AI overvalued or undervalued?

As of 1 September 2025, Kairosoft AI's valuation grade has moved from very expensive to attractive, indicating a significant shift in its market perception. The company is currently assessed as undervalued, with a PE ratio of 13.29, an EV to EBIT of 6.42, and a PEG ratio of 0.07, all suggesting that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Kairosoft AI's valuation metrics stand out, particularly against Bajaj Finance, which has a PE ratio of 31.81, and Bajaj Finserv, with a PE of 32.62. Additionally, Life Insurance, deemed very attractive, has a PE of 11.16, further highlighting Kairosoft's relative undervaluation. Despite recent stock performance showing a decline of 29.67% year-to-date compared to a 2.85% increase in the Sensex, the fundamental metrics suggest that Kairosoft AI presents a compelling investment opportunity at its current price of 112.35.