Is Nucleus Soft. overvalued or undervalued?

As of 15 October 2025, the valuation grade for Nucleus Software has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, supported by a PE ratio of 16.26, an EV to EBITDA of 13.69, and a robust ROCE of 33.63%. In comparison to peers, TCS has a higher PE ratio of 21.36, while Infosys stands at 22.46, further emphasizing Nucleus Software's relative attractiveness in valuation.
Nucleus Software's PEG ratio is notably low at 0.00, suggesting that the stock may be undervalued relative to its growth prospects. The company's recent stock performance shows a 1-week return of 1.73%, outperforming the Sensex's 1.02% return, although it has underperformed over longer periods, such as a 1-year return of -19.58% compared to the Sensex's 0.96%. Overall, the combination of strong financial ratios and favorable peer comparisons supports the conclusion that Nucleus Software is currently undervalued.