Is NetSol Technologies, Inc. overvalued or undervalued?

As of 14 May 2025, the valuation grade for NetSol Technologies, Inc. has moved from risky to attractive, indicating a significant improvement in its investment profile. The company is currently considered undervalued, with a P/E ratio of 28, which is lower than the peer average of approximately 26.34 for companies like Data Storage Corp. and higher than the industry average. Additionally, NetSol's EV to EBITDA stands at 10.66, which is competitive compared to its peers, reinforcing its attractive valuation.
In terms of key financial ratios, NetSol Technologies has a Price to Book Value of 1.05 and a PEG Ratio of 0.21, suggesting it is priced favorably relative to its growth prospects. Notably, while the company has a lower ROE of 3.82% and ROCE of 4.31%, these figures are reflective of its current growth phase rather than indicative of poor performance. Recent stock performance shows that NetSol has outperformed the S&P 500 on a year-to-date basis, returning 11.07% compared to the S&P 500's 2.44%, further supporting the notion that the stock is undervalued.