Is Updater Services overvalued or undervalued?

As of 26 May 2025, the valuation grade for Updater Services has moved from fair to attractive, indicating a more favorable outlook for the company. Based on the analysis, Updater Services appears to be undervalued. The company has a PE ratio of 17.22, an EV to EBITDA ratio of 11.29, and a PEG ratio of 0.23, which suggests that it is trading at a lower valuation compared to its growth prospects.
In comparison to its peers, Updater Services' PE ratio is significantly lower than Altius Telecom, which has a PE of 52.97, and Embassy Off.REIT, with a PE of 23.06, both categorized as very expensive. This further supports the conclusion that Updater Services is undervalued within its industry. Additionally, while the company's stock has underperformed the Sensex year-to-date with a return of -17.11% compared to the Sensex's 5.54%, its recent monthly return of 11.34% outpaces the Sensex's 3.80%, hinting at a potential recovery.