Is SIS overvalued or undervalued?

As of 7 November 2025, the valuation grade for SIS has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued based on its current metrics. Key ratios include a PE Ratio of 88.94, an EV to EBIT of 13.42, and an EV to EBITDA of 6.70, which are significantly higher than many of its peers.
In comparison, Altius Telecom, which is rated very attractive, has a PE Ratio of 56.22 and an EV to EBITDA of 10.61, while Sagility, rated fair, has a PE Ratio of 30.38 and an EV to EBITDA of 15.16. These comparisons highlight that SIS is trading at a premium relative to its peers, suggesting that it may not justify its current valuation. Additionally, SIS has underperformed the Sensex over the past year, with a return of -15.78% compared to the Sensex's 4.62%, reinforcing the notion that the stock may be overvalued at this time.