Is Virtual Galaxy overvalued or undervalued?

As of 16 October 2025, the valuation grade for Virtual Galaxy has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 12.38, an EV to EBITDA ratio of 7.87, and a Price to Book Value of 4.27. These metrics suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Virtual Galaxy's PE ratio is notably lower than that of TCS at 21.37 and Infosys at 22.44, both of which are considered attractive and fair, respectively. Additionally, while Virtual Galaxy's ROCE stands at a robust 36.52% and ROE at 34.47%, these figures do not sufficiently justify its current valuation relative to its peers. The recent stock performance has been underwhelming, with a 1-week return of -6.43% compared to a 1.60% gain in the Sensex, further reinforcing the notion that the stock is overvalued in the current market environment.