Is Protean eGov overvalued or undervalued?

As of 26 August 2025, the valuation grade for Protean eGov has moved from expensive to very expensive. This indicates that the company is currently overvalued. Key ratios highlight this assessment, with a PE ratio of 37.60, an EV to EBITDA of 41.43, and a PEG ratio of 5.04, all suggesting that the stock is priced significantly higher than its earnings growth potential.
In comparison to its peers, Protean eGov's valuation stands out unfavorably; for instance, TCS has a PE ratio of 23.18 and an EV to EBITDA of 16.34, while Infosys shows a PE ratio of 23.31 and an EV to EBITDA of 15.32. These comparisons reinforce the notion that Protean eGov is overvalued relative to its industry peers. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -54.38%, contrasting sharply with the Sensex's gain of 3.39% during the same period, further emphasizing the disconnect between its valuation and market performance.