Is Trust Fintech overvalued or undervalued?

As of 28 August 2025, Trust Fintech's valuation grade has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued, especially when considering its PE ratio of 16.41, which is notably lower than its peers such as TCS at 22.74 and Infosys at 22.86. Additionally, Trust Fintech's EV to EBITDA stands at 14.12, which is competitive compared to the industry average, while its PEG ratio is an impressive 0.00, suggesting strong growth potential relative to its price.
In comparison to its peers, Trust Fintech's return on equity (ROE) is 19.95%, which is robust and indicates effective management of equity capital. The company also boasts a return on capital employed (ROCE) of 22.06%, further reinforcing its operational efficiency. While the stock has underperformed significantly year-to-date with a decline of 64.09% compared to a 3.62% rise in the Sensex, the current valuation metrics suggest that Trust Fintech is positioned for a potential rebound, making it an attractive investment opportunity in the software and consulting sector.