Is N2N Technologies overvalued or undervalued?

As of 30 June 2025, the valuation grade for N2N Technologies has moved from risky to very expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 5.81, an EV to EBIT of 5.95, and a ROE of 0.36%. These figures indicate that while the company has a low PE ratio, its overall valuation remains high relative to its earnings and returns on equity.
In comparison to peers, N2N Technologies has a significantly lower PE ratio than Life Insurance, which stands at 12.74, and is also less favorable than Bajaj Finance's PE of 34.97. The disparity in valuation suggests that N2N Technologies is not only overvalued but also underperforming relative to its peers in the diversified commercial services sector. Additionally, the company's stock has underperformed the Sensex over the past year, with a return of -24.42% compared to the Sensex's 5.79%, further reinforcing the overvaluation narrative.