Is LTI Mindtree overvalued or undervalued?

As of 9 June 2025, LTI Mindtree's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 33.86, an EV to EBITDA of 22.63, and a PEG ratio also at 33.86. These ratios suggest that LTI Mindtree is trading at a premium compared to its peers.
In comparison, TCS and Infosys, which are key competitors, have lower PE ratios of 25.51 and 24.46, respectively, highlighting a significant valuation gap. Additionally, while LTI Mindtree has shown a strong ROCE of 39.53% and ROE of 20.26%, the elevated valuation metrics raise concerns about future growth expectations. Notably, LTI Mindtree has outperformed the Sensex over the past week and month, but its year-to-date return of -5.92% contrasts with the Sensex's positive performance, reinforcing the notion of overvaluation in the current market context.