Is Spectrum Talent overvalued or undervalued?

As of 18 July 2025, the valuation grade for Spectrum Talent has moved from fair to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued at this time. Key ratios include a PE ratio of 40.56, an EV to EBITDA of 27.00, and a ROE of 4.76%.
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 as very attractive, while eClerx Services, rated fair, has a PE of 33.5. The significant disparity in valuation metrics suggests that Spectrum Talent may not justify its current price relative to its earnings potential. Additionally, the company's year-to-date return of -37.03% compared to the Sensex's 5.60% reinforces the notion that it is overvalued in the current market environment.