Is Magellanic Cloud overvalued or undervalued?

Jul 17 2025 08:01 AM IST
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As of July 16, 2025, Magellanic Cloud is considered very expensive and overvalued with a PE ratio of 55.55 and significantly higher valuation metrics compared to peers like TCS and Infosys, despite a strong year-to-date return of 33.32%.
As of 16 July 2025, the valuation grade for Magellanic Cloud has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 55.55, an EV to EBITDA ratio of 28.64, and a Price to Book Value of 10.98.

In comparison to its peers, Magellanic Cloud's valuation metrics are starkly higher; for instance, TCS has a PE ratio of 23.74 and EV to EBITDA of 16.75, while Infosys shows a PE of 25.02 and EV to EBITDA of 16.3. These comparisons highlight that Magellanic Cloud is trading at a premium relative to its industry peers. Despite a strong recent performance with a year-to-date return of 33.32% compared to the Sensex's 5.75%, the company's high valuation ratios suggest it is overvalued in the current market.
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