Is Nucleus Soft. overvalued or undervalued?

Jul 08 2025 08:02 AM IST
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As of July 7, 2025, Nucleus Soft. is considered undervalued with a PE ratio of 19.33 and strong long-term performance, having achieved a 199.11% return over three years, compared to the Sensex's 54.01%, while its valuation metrics are more favorable than peers like TCS and Infosys.
As of 7 July 2025, the valuation grade for Nucleus Soft. has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently assessed as undervalued, with a PE ratio of 19.33, an EV to EBITDA of 16.59, and a ROE of 20.02%. In comparison, its peers such as TCS and Infosys have higher PE ratios of 25.43 and 25.27, respectively, suggesting that Nucleus Soft. offers a more favorable valuation relative to its competitors.

Despite a recent decline in stock price, Nucleus Soft. has demonstrated strong performance over the longer term, with a 3-year return of 199.11%, significantly outperforming the Sensex's 54.01% over the same period. This performance, combined with its attractive valuation metrics, reinforces the view that Nucleus Soft. is currently undervalued in the market.
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