Is Niks Technology overvalued or undervalued?

As of 10 October 2025, Niks Technology's valuation grade has moved from risky to expensive, indicating a shift in perceived value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 20.61, an EV to EBIT of 18.25, and a ROE of 7.21%.
In comparison to peers, TCS has a PE ratio of 21.79 and an EV to EBITDA of 15.38, while Infosys shows a PE of 23.07 and an EV to EBITDA of 15.16. This suggests that Niks Technology is trading at a premium relative to its peers, despite having a lower PEG ratio of 0.52, which may imply growth potential. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -11.15% compared to the Sensex's 5.58%, reinforcing the view of its overvaluation.