Is Spectrum Talent overvalued or undervalued?

As of 9 September 2025, Spectrum Talent's valuation grade has moved from attractive to fair, indicating a shift in its market perception. The company is currently fairly valued based on its financial metrics, with a PE ratio of 37.54, an EV to EBITDA of 24.35, and a ROCE of 7.21%. Compared to its peers, Firstsource Solutions, which is rated attractive, has a higher PE ratio of 39.97 and a lower EV to EBITDA of 21.16, while eClerx Services is considered very expensive with a PE of 37.4 and an EV to EBITDA of 24.00.
Given these ratios and the peer comparison, Spectrum Talent appears to be fairly valued in the current market context. Despite a recent decline in stock performance, with a year-to-date return of -41.71% compared to the Sensex's 5.18%, the company's valuation metrics suggest it is not significantly undervalued or overvalued at this time.