Is Niks Technology overvalued or undervalued?

As of 24 September 2025, Niks Technology's valuation grade has moved from fair to expensive, indicating a shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 21.69, an EV to EBIT of 19.33, and a PEG Ratio of 0.55, which suggests that while the company may have growth potential, its current price does not reflect a favorable valuation compared to its earnings growth. In comparison to its peers, TCS has a PE Ratio of 22.29 and an EV to EBITDA of 15.7, while Infosys shows a PE of 22.77 and an EV to EBITDA of 14.95, both indicating that Niks Technology is priced higher relative to its earnings than these competitors. The recent stock performance shows that Niks Technology has underperformed the Sensex over the past year, with a return of -15.58% compared to the Sensex's -3.77%, reinforcing the notion that the stock is currently overvalued.