Is Vertexplus Tech. overvalued or undervalued?

As of 7 August 2025, Vertexplus Tech. has moved from a valuation grade of risky to does not qualify, indicating a significant deterioration in its investment appeal. The company is currently overvalued, as evidenced by its high PE ratio of 72.28, an EV to EBITDA of 39.87, and a PEG ratio of 3.72, which are substantially above industry norms.
In comparison to its peers, TCS has a PE ratio of 22.38 and an EV to EBITDA of 15.76, while Infosys shows a PE of 21.9 and an EV to EBITDA of 14.36, both indicating a more attractive valuation. Additionally, Vertexplus Tech.'s ROCE stands at a mere 5.78% and ROE at 3.63%, which further underscores its overvaluation relative to more established competitors. Despite a strong YTD return of 30.59%, the overall valuation metrics suggest that the stock is not a prudent investment at its current price of 131.90.