Is Silver Touch overvalued or undervalued?

Jul 09 2025 08:02 AM IST
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As of July 8, 2025, Silver Touch is fairly valued with a PE ratio of 44.23 and a year-to-date return of 9.63%, but it may not be a compelling investment compared to peers like TCS and Infosys, which have lower PE ratios.
As of 8 July 2025, Silver Touch's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 44.23, a Price to Book Value of 7.34, and an EV to EBITDA ratio of 24.67. Compared to its peers, TCS has a more attractive PE ratio of 25.38, while Infosys maintains a fair valuation with a PE of 25.48.

In terms of performance, Silver Touch has shown a year-to-date return of 9.63%, outperforming the Sensex's 7.13%. However, its high valuation ratios suggest that while it is not overvalued, it may not present a compelling investment opportunity compared to its peers in the software and consulting industry.
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