Is KPIT Technologi. overvalued or undervalued?

As of 18 July 2025, the valuation grade for KPIT Technologies has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 41.34, an EV to EBITDA ratio of 27.38, and a PEG ratio of 1.00. In comparison to its peers, TCS has a significantly lower PE ratio of 23.42 and an EV to EBITDA of 16.52, while Infosys is also fairly valued with a PE of 24.67 and an EV to EBITDA of 16.07.
Despite the fair valuation, KPIT Technologies has underperformed recently, with a year-to-date return of -13.7% compared to the Sensex's 4.63%. This performance, coupled with its high ratios, suggests that while the stock is not overvalued, it may be facing challenges that could impact its growth prospects moving forward.