Is Xchanging Sol. overvalued or undervalued?

As of 25 September 2025, the valuation grade for Xchanging Solutions has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, particularly when considering its key financial ratios: a PE ratio of 18.10, an EV to EBITDA of 12.58, and a PEG ratio of 0.31, which suggests strong growth potential relative to its price.
In comparison to its peers, Xchanging Solutions stands out favorably; for instance, Firstsource Solutions has a significantly higher PE ratio of 40.28, while eClerx Services is even more expensive with a PE of 36.56. This positions Xchanging Solutions as an attractive investment opportunity within the Computers - Software & Consulting industry. Additionally, while the stock has underperformed the Sensex over the past year with a return of -29.05% compared to the Sensex's -4.71%, its strong fundamentals suggest it may be poised for recovery.