Is Spectrum Talent overvalued or undervalued?

As of 10 September 2025, the valuation grade for Spectrum Talent has moved from fair to attractive, indicating a more favorable assessment of its market position. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 36.53, an EV to EBITDA of 23.46, and a ROCE of 7.21%.
In comparison to its peers, Spectrum Talent's PE ratio is lower than Firstsource Solutions, which stands at 40.66, but higher than Digitide Solutions at 19.17. The PEG ratio for Spectrum Talent is notably at 0.00, suggesting potential for growth relative to its price. Despite recent stock performance lagging behind the Sensex, with a year-to-date decline of 43.09% versus a 5.62% gain for the index, the attractive valuation suggests that there may be a buying opportunity for investors looking at long-term growth potential.