Is Sigma Solve overvalued or undervalued?

As of 10 July 2025, Sigma Solve's valuation grade has moved from very attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 20.73, an EV to EBITDA of 15.05, and a PEG ratio of 1.13, which suggest that while the company is performing well, it may not present a significant investment opportunity at this time.
When compared to peers, Sigma Solve's PE ratio is lower than TCS's 25.2 and Infosys's 25.14, both of which are rated attractive. Additionally, Sigma Solve's ROCE of 60.20% and ROE of 38.62% are strong indicators of operational efficiency, yet they do not sufficiently elevate its valuation in the current market context. Recent stock performance shows a year-to-date return of 19.07%, outperforming the Sensex's 6.46%, but the overall trend over the past year indicates a decline of 8.72%. This further supports the view that Sigma Solve is fairly valued in the current market landscape.