Is Mphasis overvalued or undervalued?

As of 13 May 2025, the valuation grade for Mphasis has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 28.50, an EV to EBITDA of 17.75, and a PEG ratio of 3.25, all of which are higher than many of its peers. In comparison, TCS has a PE ratio of 25.23 and an EV to EBITDA of 17.63, while Infosys shows a PE of 24.32 and an EV to EBITDA of 15.83, suggesting that Mphasis is trading at a premium relative to these competitors. Despite a recent positive stock performance, with a 1-week return of 4.88% compared to the Sensex's 1.42%, the overall valuation metrics indicate that Mphasis is overvalued in the current market environment.