Is Sahana Systems overvalued or undervalued?

As of 4 November 2025, Sahana Systems has moved from a fair valuation to an expensive one. The company is currently overvalued, as indicated by its high PE ratio of 29.33, a Price to Book Value of 5.91, and an EV to EBITDA ratio of 18.03. In comparison to its peers, TCS has a PE ratio of 21.51 and EV to EBITDA of 8.36, while Infosys shows a PE of 21.68 and EV to EBITDA of 4.92, both highlighting that Sahana Systems is trading at a premium relative to these established companies.
Additionally, the company's PEG ratio stands at a low 0.38, suggesting that its growth prospects may not justify its current price. Despite a strong ROCE of 36.70% and ROE of 20.15%, the valuation metrics indicate that Sahana Systems is not aligned with its peers in terms of value. The stock has shown a significant return of 15.24% over the past week, contrasting with a decline of 1.31% in the Sensex, but this short-term performance does not alter the overall overvaluation assessment.