Is Sonata Software overvalued or undervalued?

As of 7 November 2025, Sonata Software's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 24.03, a Price to Book Value of 6.03, and an EV to EBITDA of 15.02. In comparison to its peers, TCS has a more attractive PE ratio of 21.53 and EV to EBITDA of 8.37, while Infosys is fairly valued with a PE of 21.82 and an EV to EBITDA of 5.02. The stock has underperformed in the year-to-date period, with a return of -38.94% compared to the Sensex's 6.50% gain, further reinforcing the notion of overvaluation. Given these metrics and comparisons, Sonata Software appears to be priced above its intrinsic value relative to its peers in the software and consulting industry.