Is Vertoz overvalued or undervalued?

As of 17 July 2025, Vertoz's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently overvalued based on its financial metrics, with a PE ratio of 30.78, an EV to EBIT of 34.58, and an EV to EBITDA of 21.91. These ratios suggest that investors are paying a premium for the stock relative to its earnings potential.
In comparison to its peers, Vertoz's PE ratio is significantly lower than Altius Telecom, which has a PE ratio of 53.51, but higher than Sagility India at 39.04. The PEG ratio for Vertoz stands at an exceptionally low 0.06, indicating that growth expectations may not justify the current price. Despite recent strong stock performance, with a 1-year return of 141.75% compared to the Sensex's 2.03%, the valuation metrics suggest that Vertoz is overvalued in the current market environment.