Is P.E. Analytics overvalued or undervalued?

As of 16 July 2025, P.E. Analytics has moved from a very attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics, with a P/E ratio of 17.89, an EV/EBITDA of 13.16, and a PEG ratio of 1.16. When compared to peers, TCS has a significantly higher P/E ratio of 23.74, while Infosys stands at 25.02, indicating that P.E. Analytics is trading at a lower valuation relative to these competitors.
Despite its strong ROCE of 252.73% and ROE of 16.81%, the stock has underperformed recently, with a year-to-date return of -16.67% compared to the Sensex's 6.63%. This underperformance, coupled with the fair valuation grade, suggests that while P.E. Analytics is not undervalued, it may be a stable investment in a competitive landscape.