Is Mphasis overvalued or undervalued?

As of 11 July 2025, Mphasis has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its key financial ratios, including a PE ratio of 31.53, an EV to EBITDA ratio of 19.71, and a PEG ratio of 3.60. These metrics indicate that Mphasis is trading at a premium compared to its peers.
In comparison, TCS and HCL Technologies have more attractive valuations with PE ratios of 23.98 and 25.54, respectively, while Infosys is deemed fair with a PE of 24.8. The high valuation of Mphasis, particularly in relation to its peers, suggests that the current market price may not be justified. Additionally, while Mphasis has outperformed the Sensex over the past year with a return of 9.94% compared to the Sensex's 3.26%, this does not mitigate the concerns regarding its current overvaluation.