Is Niks Technology overvalued or undervalued?
As of June 23, 2025, Niks Technology is considered overvalued with a valuation grade of expensive, reflected by a PE Ratio of 22.28, an EV to EBIT of 20.90, and a PEG Ratio of 0.56, despite having a lower PE than some peers like TCS and HCL Technologies.
As of 23 June 2025, the valuation grade for Niks Technology has moved from risky to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 22.28, an EV to EBIT of 20.90, and a ROCE of 30.02%. In comparison to its peers, Niks Technology's PE Ratio is lower than TCS's 25.29 and HCL Technologies' 26.58, but higher than Wipro's 20.99. The PEG Ratio of 0.56 suggests that while growth expectations may be favorable, the current valuation does not justify the price given the performance of its peers. Additionally, the company has underperformed the Sensex over the past year, which further supports the conclusion of overvaluation.
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