Is Nucleus Soft. overvalued or undervalued?

As of 16 June 2025, Nucleus Software has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 19.46, an EV to EBITDA ratio of 16.72, and a PEG ratio of 0.00, indicating strong growth potential relative to its price. Notably, its ROCE stands at an impressive 33.63%, and ROE is at 20.02%, showcasing effective capital utilization and profitability.
In comparison to its peers, Nucleus Software's valuation metrics are more favorable than those of TCS, which has a PE of 26.05, and Infosys, which has a PE of 25.25. Additionally, HCL Technologies is at a PE of 26.88, further highlighting Nucleus Software's relative attractiveness in the market. While the stock has underperformed in the short term with a 1-week return of -3.09% compared to the Sensex's -0.79%, its year-to-date performance of 16.47% against the Sensex's 4.68% suggests a strong recovery potential moving forward.