Is LTI Mindtree overvalued or undervalued?

As of 1 July 2025, the valuation grade for LTI Mindtree has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 34.32, an EV to EBITDA of 22.95, and a PEG ratio also at 34.32, all of which are significantly higher than those of its peers. For comparison, TCS has a PE ratio of 25.56 and EV to EBITDA of 17.86, while Infosys stands at a PE of 25.01 and EV to EBITDA of 16.3, suggesting that LTI Mindtree is trading at a premium relative to these established competitors.
Furthermore, while LTI Mindtree has shown strong performance metrics with a ROCE of 39.53% and ROE of 20.26%, the recent stock performance has lagged behind the Sensex, with a year-to-date return of -4.66% compared to the Sensex's 7.11%. This underperformance, coupled with the elevated valuation ratios, reinforces the conclusion that LTI Mindtree is overvalued in the current market environment.