Is SDC Techmedia overvalued or undervalued?

As of 5 June 2025, the valuation grade for SDC Techmedia has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its PE ratio of 3.96, which is notably higher than its peers, such as the industry average PE ratio of approximately 3.5. Additionally, SDC Techmedia's EV to EBITDA stands at 4.16, which is also above the peer average, suggesting that the market may be pricing the company too high relative to its earnings potential.
In comparison to its peers, SDC Techmedia's PEG ratio of 0.04 highlights a stark contrast, indicating that the stock may not be justified by its growth prospects. The company's return on equity (ROE) is 19.04%, which is commendable, yet the overall valuation metrics suggest that the stock is not aligned with its performance. Furthermore, SDC Techmedia has underperformed against the Sensex, with a year-to-date return of -36.26% compared to the Sensex's 5.56%, reinforcing the notion that the stock is overvalued in the current market environment.