Is Ksolves India overvalued or undervalued?

As of 4 July 2025, Ksolves India has moved from a fair to an expensive valuation grade. The company is currently considered overvalued. Key ratios include a PE ratio of 24.12, an EV to EBITDA of 17.27, and a Price to Book Value of 39.88, which are significantly higher than some of its peers. For instance, TCS has a PE ratio of 25.49 and an EV to EBITDA of 17.82, while Infosys shows a PE of 25.51 and an EV to EBITDA of 16.64, indicating that Ksolves India is trading at a premium compared to these established players.
The company's high valuation is further underscored by its PEG ratio of 24.12 and an EV to Capital Employed of 42.86, which suggest that the market may be overestimating its growth potential. Additionally, Ksolves India's stock has underperformed with a year-to-date return of -27.45%, contrasting sharply with the Sensex's positive return of 6.77% in the same period. This performance further reinforces the notion that Ksolves India is overvalued in the current market environment.