Is S A Tech Soft. overvalued or undervalued?

As of 28 August 2025, S A Tech Soft's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued. Key ratios reveal a PE ratio of 9.78, an EV to EBITDA of 7.05, and a ROE of 63.59%. In comparison, peers such as TCS and Infosys have significantly higher PE ratios of 22.74 and 22.86, respectively, suggesting that S A Tech Soft's valuation does not align with industry standards.
Additionally, the company's stock performance has been notably poor, with a year-to-date return of -56.17%, contrasting sharply with the Sensex's positive return of 3.62% in the same period. This underperformance, alongside its elevated valuation metrics, reinforces the conclusion that S A Tech Soft is overvalued in the current market environment.