Is Quest Flow overvalued or undervalued?

As of 17 October 2025, the valuation grade for Quest Flow has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting high valuation levels. The company appears overvalued given its current metrics, with a PE ratio of 37.51, an EV to EBITDA of 20.25, and a price to book value of 3.55. These ratios are significantly higher than its peers, such as PTC India, which has a PE ratio of 7.81 and an EV to EBITDA of 4.13, highlighting the disparity in valuation.
In comparison to other companies in the sector, Quest Flow's financial ratios suggest that it is not only overvalued but also underperforming in terms of returns, as evidenced by its year-to-date stock return of -59.73% compared to the Sensex's gain of 7.44%. The company's ROCE stands at 12.18%, and ROE at 9.45%, which are relatively low considering the high valuation multiples. Overall, Quest Flow is positioned as overvalued in the current market landscape.