Is Rategain Travel overvalued or undervalued?

As of 8 August 2025, Rategain Travel's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial ratios, with a PE ratio of 26.65, an EV to EBITDA of 21.87, and a ROCE of 17.20%. In comparison to its peers, TCS has a more attractive PE ratio of 22.28, while Infosys maintains a fair valuation with a PE of 21.71.
Despite the recent stock performance showing a 9.39% increase over the past week, Rategain Travel has underperformed on a year-to-date basis with a decline of 34.57%, contrasting with a modest 2.20% gain in the Sensex. This suggests that while the stock may be fairly valued at present, its recent performance raises concerns about future growth potential in the context of its competitive landscape.