Is P.E. Analytics overvalued or undervalued?

As of 20 June 2025, the valuation grade for P.E. Analytics has moved from fair to very attractive, indicating a significant positive shift in its perceived value. The company is currently assessed as undervalued. Key ratios include a P/E ratio of 17.08, an EV to EBITDA of 12.29, and a PEG ratio of 1.11, which suggest that the company is trading at a reasonable valuation compared to its growth prospects.
In comparison to its peers, P.E. Analytics shows a more favorable valuation profile than TCS, which has a P/E of 25.59, and Infosys, with a P/E of 25.22. The strong return on capital employed (ROCE) of 252.73% and return on equity (ROE) of 16.81% further reinforce the attractiveness of P.E. Analytics. Despite recent underperformance relative to the Sensex, the company's solid fundamentals and attractive valuation position it well for potential upside.