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 financial metrics. Key ratios include a PE ratio of 31.53, an EV to EBIT of 24.03, and a PEG ratio of 3.60, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Mphasis's PE ratio is significantly higher than TCS, which stands at 23.98, and Infosys, with a PE of 24.8. This indicates that Mphasis is priced at a higher multiple relative to its earnings than these competitors. Notably, the company's recent stock performance has shown a decline of 3.56% over the past week, while the Sensex has only decreased by 1.12%, further reinforcing the notion that Mphasis may be overvalued in the current market environment.