Is Sonata Software overvalued or undervalued?

Nov 16 2025 08:08 AM IST
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As of November 14, 2025, Sonata Software is fairly valued with a PE ratio of 23.68 and an EV to EBITDA of 15.39, positioning it competitively against peers like TCS and Infosys, despite a year-to-date return of -37.90% compared to the Sensex's 8.22%.
As of 14 November 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 based on its financial metrics. Key ratios include a PE Ratio of 23.68, an EV to EBITDA of 15.39, and a ROE of 24.89%.

In comparison to its peers, TCS has a PE of 22.34 and EV to EBITDA of 15.7, while Infosys shows a PE of 22.19 and EV to EBITDA of 14.54. These comparisons suggest that Sonata Software is positioned competitively within its industry. Despite recent underperformance relative to the Sensex, particularly with a YTD return of -37.90% compared to the Sensex's 8.22%, the company's valuation appears justified at this time.
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