Is Silver Touch overvalued or undervalued?

As of 19 November 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 39.60, a Price to Book Value of 7.09, and an EV to EBITDA ratio of 22.16. In comparison to its peers, TCS, which is rated attractive, has a significantly lower PE ratio of 22.64, while Infosys, rated fair, has a PE ratio of 22.77.
Despite the fair valuation, Silver Touch's return metrics are noteworthy, with a ROCE of 22.40% and a ROE of 17.91%. The company has outperformed the Sensex over the past year with a stock return of 16.19% compared to the Sensex's 9.81%. This performance, coupled with its current valuation metrics, suggests that while Silver Touch is fairly valued, it may still present a solid investment opportunity relative to its peers.