Is Sonata Software overvalued or undervalued?

Jul 29 2025 08:03 AM IST
share
Share Via
As of July 28, 2025, Sonata Software is fairly valued with a PE ratio of 26.94 and an EV to EBITDA of 16.33, outperforming the Sensex over five years despite a year-to-date decline of 32.11%.
As of 28 July 2025, Sonata Software's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued. Key ratios include a PE ratio of 26.94, an EV to EBITDA of 16.33, and a ROE of 24.89%.

In comparison to its peers, TCS has a PE ratio of 22.61 and an EV to EBITDA of 15.93, while Infosys shows a PE of 23.1 and an EV to EBITDA of 15.18. These comparisons suggest that Sonata Software's valuation is in line with its industry, reinforcing the conclusion that it is fairly valued. Notably, despite a significant decline in stock performance year-to-date at -32.11%, it has outperformed the Sensex over a longer horizon of 5 years, with a return of 337.83% compared to the Sensex's 110.15%.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News