Is Xchanging Sol. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Xchanging Solutions has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 22.39, an EV to EBITDA ratio of 16.87, and a PEG ratio of 0.09, suggesting strong growth potential relative to its price.
In comparison to its peers, Xchanging Solutions has a lower PE ratio than Firstsource Solutions, which stands at 44.51, and eClerx Services at 30.83, both of which are rated as very attractive and fair, respectively. The company's return metrics are noteworthy, with a ROCE of 36.76% and an ROE of 13.82%, indicating efficient capital utilization. Although Xchanging Solutions has underperformed the Sensex on a year-to-date basis, with a decline of 10.84% compared to the Sensex's gain of 6.79%, its long-term performance remains robust, having increased by 129.06% over the past five years.