Is Spectrum Talent overvalued or undervalued?

As of 15 July 2025, Spectrum Talent'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 40.22, an EV to EBITDA of 26.71, and a Price to Book Value of 1.92. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Spectrum Talent's PE ratio is lower than Firstsource Solutions at 43.15, which is rated as very attractive, but higher than eClerx Services, which is fairly valued at a PE of 32.21. The PEG ratio for Spectrum Talent is notably 0.00, indicating no growth expectations priced in, which further supports the overvaluation assessment. Additionally, the company has underperformed relative to the Sensex, particularly year-to-date, where it has declined by 37.55% compared to the Sensex's gain of 6.56%.