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 market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 20.61, an EV to EBITDA of 18.25, and a PEG ratio of 0.52, which suggests that despite the high PE ratio, the growth potential may not justify the current price.
When compared 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, both indicating that Niks Technology is trading at a premium relative to these competitors. Additionally, the stock has underperformed against the Sensex over the past year, with a return of -11.15% compared to the Sensex's 1.09%, reinforcing the notion that the stock may be overvalued in the current market context.