Is Unicommerce overvalued or undervalued?

As of 16 August 2024, Unicommerce's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its high valuation metrics. Notably, Unicommerce has a PE ratio of 66.63, an EV to EBITDA ratio of 53.45, and an EV to Sales ratio of 12.48, all of which are substantially higher than its peers.
In comparison, Tata Consultancy Services Ltd. has a PE ratio of 25.23 and an EV to EBITDA of 17.63, while Infosys Ltd. shows a PE of 24.32 and an EV to EBITDA of 15.83, highlighting the stark contrast in valuation. The high PEG ratio of 0.00 for Unicommerce further emphasizes its overvaluation, as it suggests no growth potential relative to its price. Additionally, while Unicommerce has seen a recent stock return of 8.1% over the past week compared to a 1.35% return from the Sensex, its year-to-date performance shows a decline of 15.25%, reinforcing the notion that the stock may be overpriced in the current market context.