Is Shyama Computro. overvalued or undervalued?

As of 30 May 2025, the valuation grade for Shyama Computro has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 4.83, an EV to EBIT ratio of 4.82, and a Price to Book Value of 0.48. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peer, Shyama Infosys Ltd., which also holds a very expensive rating, the PE ratio is nearly identical at 4.83, with an EV to EBITDA ratio of 4.82. This suggests that Shyama Computro is not only overvalued relative to its own metrics but also in line with its peer's valuation. Additionally, the company's recent stock performance has been volatile, with a 1-year return of -35.66%, contrasting sharply with the Sensex's return of 7.59% over the same period, further reinforcing the notion of overvaluation.