Is Sigma Solve overvalued or undervalued?

As of 13 June 2025, the valuation grade for Sigma Solve has moved from very attractive to fair, indicating a shift in market perception. The company is currently fairly valued based on its financial metrics, with a PE ratio of 20.19, an EV to EBITDA ratio of 14.65, and a PEG ratio of 1.10. Compared to its peers, Sigma Solve's PE ratio is lower than that of TCS at 25.69 and Infosys at 24.91, both of which are rated attractive, suggesting that Sigma Solve may not be capturing the same growth expectations as these competitors.
The company's strong return on capital employed (ROCE) of 60.20% and return on equity (ROE) of 38.62% demonstrate solid profitability, yet the valuation metrics indicate that it is not significantly undervalued. Recent stock performance shows Sigma Solve outperforming the Sensex over the past month with a return of 21.71% compared to the Sensex's -0.04%, which may reflect positive sentiment. Overall, Sigma Solve appears to be fairly valued in the current market environment.