Is Kore Digital overvalued or undervalued?

As of 9 June 2025, Kore Digital's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, with a PE ratio of 13.35, an EV to EBITDA of 9.01, and a ROE of 29.77%. In comparison to its peers, Indus Towers has a PE ratio of 10.74 and an EV to EBITDA of 6.01, while Affle 3i is significantly more expensive with a PE ratio of 68.73 and an EV to EBITDA of 51.61.
Kore Digital's strong performance metrics, particularly its high ROCE of 38.30%, suggest that it is generating substantial returns on capital, reinforcing its undervaluation status. Despite a year-to-date stock return of -39.76% compared to the Sensex's 6.17%, the recent uptick in stock price indicates a potential recovery and investor interest, further supporting the conclusion that the company is undervalued in the current market.