Is Nucleus Soft. overvalued or undervalued?

As of 14 October 2025, the valuation grade for Nucleus Software has moved from attractive to fair. The company is currently fairly valued, with a PE ratio of 16.16, an EV to EBITDA ratio of 13.60, and a ROE of 20.02%. In comparison to peers, TCS has a higher PE ratio of 21.3 and EV to EBITDA of 8.2, while Infosys also shows a higher PE at 22.7 and an EV to EBITDA of 14.91, indicating that Nucleus Software is positioned lower in terms of valuation metrics within its industry.
Despite a recent stock performance that outpaced the Sensex over the past week, Nucleus Software has struggled in the longer term, with a one-year return of -21.63% compared to the Sensex's modest gain of 0.07%. This suggests that while the company may be fairly valued based on current ratios, its stock performance may not reflect the same optimism, warranting a cautious outlook moving forward.