Is Protean eGov overvalued or undervalued?

As of 4 November 2025, the valuation grade for Protean eGov has moved from expensive to very expensive. This indicates a significant concern regarding its current market valuation. The company is assessed as overvalued, particularly highlighted by its PE ratio of 36.98, EV to EBIT of 64.91, and a PEG ratio of 5.07, which are substantially higher than those of its peers. For instance, TCS, which is rated attractive, has a PE ratio of 21.51 and an EV to EBITDA of 8.36, while Infosys, rated fair, has a PE ratio of 21.68 and an EV to EBITDA of 4.92.
In comparison to the broader market, Protean eGov's stock has underperformed significantly, with a year-to-date return of -55.21%, while the Sensex has gained 6.81% during the same period. This stark contrast reinforces the notion that the stock is overvalued relative to its performance and that investors may need to reassess their expectations regarding future growth and profitability.