Is S A Tech Soft. overvalued or undervalued?

As of 25 August 2025, the valuation grade for S A Tech Soft. has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 9.76, an EV to EBIT of 8.12, and an EV to EBITDA of 7.04, which are significantly lower than its peers. For instance, TCS has a PE Ratio of 23.06 and an EV to EBITDA of 16.26, while Infosys shows a PE of 23.35 and an EV to EBITDA of 15.35, indicating that S A Tech Soft. is trading at a substantial discount compared to these industry leaders.
Additionally, the company has experienced a significant decline in stock performance, with a year-to-date return of -55.66%, contrasting sharply with the Sensex's positive return of 5.60% in the same period. This further reinforces the notion that S A Tech Soft. is overvalued, as its financial ratios do not justify its current market price relative to its more successful peers in the software and consulting industry.