Is Sonata Software overvalued or undervalued?

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 appears to be fairly valued at this time. 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 is rated attractive with a PE of 22.34, while Infosys is also rated fair with a PE of 22.19. Notably, Sonata's PEG Ratio stands at 0.00, suggesting that the company may not be expected to grow in earnings, which could be a point of concern. Despite recent underperformance relative to the Sensex, particularly with a YTD return of -37.90% compared to the Sensex's 8.22%, the overall valuation indicates that Sonata Software is currently fairly valued in the market.