Is Sanstar overvalued or undervalued?

As of 5 September 2025, Sanstar's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 58.05, an EV to EBITDA of 49.21, and a Price to Book Value of 2.37. In comparison, its peers such as Godrej Industries, which has a PE ratio of 40.09 and an EV to EBITDA of 30.89, highlight the relative expense of Sanstar. Additionally, while Sanstar's ROCE stands at 9.69% and ROE at 4.09%, these figures do not justify the high valuation when compared to its peers. The stock has underperformed significantly, with a year-to-date return of -28.27%, contrasting sharply with the Sensex's positive return of 3.29%. This underperformance further supports the conclusion that Sanstar is currently overvalued in the market.