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, with 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, which stands at 36.42, and eClerx Services, which is at 34.25, highlighting its relative attractiveness in the market. Additionally, Xchanging's return on capital employed (ROCE) is an impressive 45.16%, further supporting its undervaluation narrative. Despite recent stock performance lagging behind the Sensex, particularly with a YTD return of -20.98% compared to the Sensex's 6.50%, the company's strong fundamentals suggest it may be a compelling investment opportunity moving forward.