Is Kapston Services overvalued or undervalued?

As of 3 July 2025, the valuation grade for Kapston Services has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 28.84, an EV to EBITDA of 20.36, and a Price to Book Value of 6.52, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Kapston Services' PE Ratio of 28.84 is significantly lower than that of Altius Telecom, which stands at 51.52, but higher than BLS International's 29.48. The EV to EBITDA ratio of 20.36 also positions Kapston Services on the higher end compared to peers like Sagility India at 16.1. While Kapston Services has shown strong returns over the past year, outperforming the Sensex with a 32.14% increase, the current valuation metrics indicate that it is overvalued in the market.