Is Virtual Galaxy overvalued or undervalued?

As of 1 October 2025, the valuation grade for Virtual Galaxy has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, with a PE ratio of 13.41, an EV to EBITDA ratio of 8.47, and an EV to Sales ratio of 3.89. These ratios suggest that the stock is priced higher relative to its earnings and sales compared to its peers.
In comparison to notable competitors, TCS has a PE ratio of 21.4 and an EV to EBITDA of 15.05, while Infosys shows a PE of 22.03 and an EV to EBITDA of 14.44. This stark contrast highlights that Virtual Galaxy's valuation does not align favorably with its industry peers, reinforcing the conclusion of overvaluation. Additionally, the company's recent stock performance has lagged behind the Sensex, with a 1-week return of -7.13% compared to the Sensex's -0.88%, further indicating investor concerns regarding its current price level.