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 assessed as undervalued, particularly when considering its PE ratio of 16.63, a PEG ratio of 0.16, and an impressive ROCE of 45.16%. These metrics suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Xchanging Solutions stands out with a significantly lower PE ratio than Firstsource Solutions, which has a PE of 36.42, and eClerx Services, which is at 34.25. Additionally, Xchanging's EV to EBITDA ratio of 11.84 is competitive, especially when compared to the industry average. Despite a recent decline in stock price, with a year-to-date return of -20.98% compared to a 6.50% return for the Sensex, the fundamental metrics indicate that Xchanging Solutions presents a compelling investment opportunity in the current market.