Is Sancode Tech. overvalued or undervalued?

As of 8 August 2025, Sancode Tech's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of 32.02, an EV to EBITDA ratio of 31.25, and a PEG ratio of 0.26. These figures suggest that despite a relatively low growth expectation (as indicated by the PEG ratio), the stock price remains high compared to its earnings and cash flow metrics.
In comparison to its peers, Sancode Tech's valuation stands out unfavorably. For instance, TCS has a PE ratio of 22.28 and an EV to EBITDA of 15.69, while Infosys shows a PE of 21.71 and an EV to EBITDA of 14.23. This stark contrast highlights that Sancode Tech is trading at a premium relative to its competitors in the software and consulting industry. Additionally, the company's stock has outperformed the Sensex over the past month, with a return of 43.73% compared to the Sensex's decline of 4.60%, which may further inflate investor expectations despite the underlying valuation concerns.