Is S A Tech Soft. overvalued or undervalued?

As of 29 August 2025, S A Tech Soft's valuation grade has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued based on its financial metrics. Key ratios include a PE ratio of 10.18, an EV to EBITDA of 7.30, and a ROE of 63.59%. In comparison to its peers, TCS has a PE ratio of 22.65 and an EV to EBITDA of 15.96, while Infosys shows a PE of 22.39 and an EV to EBITDA of 14.69. These comparisons highlight that S A Tech Soft's valuation is not only higher relative to its own historical performance but also significantly lagging behind industry leaders. Furthermore, the company's stock has underperformed the Sensex, with a year-to-date return of -56.2% compared to the Sensex's positive return of 3.31%.