Is Saksoft overvalued or undervalued?

As of 28 July 2025, Saksoft's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued. Key ratios include a PE ratio of 25.51, an EV to EBITDA of 18.14, and a ROCE of 26.87%. When compared to peers, TCS has a PE ratio of 22.61 and an EV to EBITDA of 15.93, while Infosys stands at a PE of 23.1 and an EV to EBITDA of 15.18, suggesting that Saksoft's valuation is competitive within its industry. Despite recent stock performance showing a decline of 8.96% over the past week compared to a 1.59% drop in the Sensex, Saksoft's long-term returns are impressive, with a 3-year increase of 178.03% versus the Sensex's 42.27%. This strong historical performance, coupled with its attractive valuation metrics, reinforces the view that Saksoft is currently undervalued in the market.