Is Spacenet Enterpr overvalued or undervalued?

As of 8 July 2025, Spacenet Enterprises has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, with a PE ratio of 40.19, an EV to EBITDA ratio of 35.13, and a PEG ratio of 3.75. These ratios indicate that the stock is trading at a significant premium compared to its earnings growth potential.
In comparison to its peers, Spacenet's valuation stands out unfavorably. For instance, Altius Telecom, which is rated very attractive, has a PE ratio of 54.22, while Sagility India, rated attractive, has a much lower EV to EBITDA ratio of 15.82. The disparity in these ratios suggests that Spacenet is not only overvalued relative to its peers but also lacks the growth metrics to justify its current price. Additionally, the company's stock has underperformed significantly over the past year, with a return of -73.73% compared to the Sensex's 4.94%, further reinforcing the notion of overvaluation.