Is SIS overvalued or undervalued?

As of 1 February 2024, the valuation grade for SIS has moved from very attractive to attractive. The company is currently assessed as overvalued, particularly given its high PE ratio of 453.50 and an EV to EBITDA ratio of 19.53. The return on capital employed (ROCE) stands at a low 4.67%, which raises concerns about its profitability relative to its valuation.
In comparison to its peers, SIS has a significantly higher PE ratio than the industry average, while its PEG ratio is at 0.00, indicating no growth expectations priced in. For instance, a peer in the same industry might have a PE ratio closer to 20, which highlights the disparity. Additionally, SIS's recent stock performance has lagged behind the Sensex, with a 1-year return of -14.1% compared to the Sensex's 7.59%, further supporting the conclusion that the stock is overvalued.