Is KPIT Technologi. overvalued or undervalued?

As of 15 July 2025, the valuation grade for KPIT Technologies has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on key financial metrics, including a PE ratio of 42.18, an EV to EBITDA of 27.96, and a Price to Book Value of 12.16. These ratios significantly exceed those of its peers, such as TCS with a PE ratio of 23.88 and HCL Technologies with a PE ratio of 25.04, highlighting a premium valuation that may not be justified by its earnings potential.
In comparison to the broader market, KPIT Technologies has underperformed in the short term, with a year-to-date return of -11.94% against a Sensex return of 5.67%. This performance further supports the conclusion that the stock is overvalued, especially when contrasted with its peers and the overall market trends. Given these factors, KPIT Technologies appears to be overvalued in the current market environment.