Is Protean eGov overvalued or undervalued?

As of 16 April 2024, the valuation grade for Protean eGov has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued, with a PE ratio of 41.68, an EV to EBITDA ratio of 45.50, and a Price to Book Value of 4.06. These ratios suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, Protean eGov's valuation metrics are notably higher than those of Tata Consultancy Services Ltd., which has a PE ratio of 25.23 and an EV to EBITDA of 17.63, and Infosys Ltd., with a PE ratio of 24.32 and an EV to EBITDA of 15.83. The significant disparity in these ratios underscores the overvaluation of Protean eGov in the current market. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -50.77% compared to the Sensex's 5.54%, further reinforcing the notion that the stock may not justify its high valuation.