Is Xchanging Sol. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Xchanging Solutions has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, supported by a PE ratio of 16.63, an EV to EBITDA of 11.84, and a PEG ratio of 0.16, which suggests strong growth potential relative to its price.
In comparison to its peers, Xchanging Solutions has a significantly lower PE ratio than Firstsource Solutions at 36.42 and eClerx Services at 34.25, both of which are considered expensive. Additionally, Xchanging's robust ROCE of 45.16% highlights its efficient use of capital compared to its industry counterparts. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -20.98% versus the Sensex's 6.50%, the attractive valuation metrics suggest that Xchanging Solutions presents a compelling investment opportunity.