Is Mphasis overvalued or undervalued?

As of 9 July 2025, Mphasis has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 31.88, an EV to EBITDA ratio of 19.93, and a PEG ratio of 3.64. In comparison to its peers, TCS has a more attractive PE ratio of 25.22, while Infosys maintains a fair valuation with a PE of 25.4. Mphasis shows a strong return on capital employed (ROCE) of 26.73% and a return on equity (ROE) of 17.68%, indicating robust profitability metrics. Despite its fair valuation, Mphasis has underperformed the Sensex in the short term, with a 1-week return of -1.16%, but it has outperformed over the longer term, with a 5-year return of 215.94% compared to the Sensex's 127.39%.