Is Rategain Travel overvalued or undervalued?

As of 27 June 2025, Rategain Travel's valuation grade has moved from very attractive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 25.82, an EV to EBITDA ratio of 20.94, and a PEG ratio of 0.60. In comparison to its peers, TCS has a slightly lower PE ratio of 25.66 and an attractive valuation, while Infosys also holds a fair valuation with a PE of 25.02, suggesting that Rategain is positioned similarly within its industry.
Despite the recent stock performance showing a decline of 36.88% year-to-date compared to a 7.58% gain in the Sensex, Rategain's ratios indicate it is not significantly undervalued. The company's ROCE stands at 17.20%, and ROE at 12.42%, which are respectable figures but do not suggest a compelling undervaluation relative to its peers. Overall, Rategain Travel appears to be fairly valued in the current market context.