Is S A Tech Soft. overvalued or undervalued?

As of 29 August 2025, the valuation grade for S A Tech Soft. has moved from expensive to very expensive. This indicates a significant shift in the perception of the company's valuation, suggesting that it is overvalued. The company currently has a PE ratio of 10.18, an EV to EBITDA ratio of 7.30, and an 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 ratios highlight that S A Tech Soft. is trading at a much lower valuation than its competitors, yet the overall grade suggests it is still overvalued given its current metrics. Additionally, the company's stock has significantly underperformed against the Sensex, with a year-to-date return of -56.2% compared to the Sensex's 3.31%.