Is Spectrum Talent overvalued or undervalued?

As of 18 July 2025, Spectrum Talent has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 40.56, while the EV to EBITDA ratio is 27.00, and the ROE is only 4.76%. These figures indicate that the company's stock price is not justified by its earnings and returns on equity.
In comparison to its peers, Spectrum Talent's PE ratio is slightly lower than Firstsource Solutions, which has a PE of 42.56 and is rated very attractive. However, it is significantly higher than eClerx Services, which has a PE of 33.5 and is rated fair. The stark contrast in valuation metrics suggests that Spectrum Talent may not be a favorable investment at its current price of 121.00, especially considering its year-to-date return of -37.03% compared to the Sensex's 5.60% gain.