Is Zaggle Prepaid overvalued or undervalued?

As of 14 May 2025, Zaggle Prepaid's valuation grade has moved from expensive to very expensive. This indicates that the company is currently overvalued. Key ratios highlight this concern, with a PE ratio of 66.22, an EV to EBITDA of 45.50, and a Price to Book Value of 4.67, all significantly higher than industry norms.
In comparison to its peers, Zaggle's valuation metrics stand out unfavorably. For instance, Tata Consultancy Services has a PE ratio of 25.23 and an EV to EBITDA of 17.63, while Infosys shows a PE of 24.32 and an EV to EBITDA of 15.83. These comparisons further reinforce the notion that Zaggle Prepaid is overvalued. Additionally, despite a strong 1-year stock return of 58.32%, the company's year-to-date performance shows a decline of 13.73%, contrasting with the Sensex's 5.54% gain, which may suggest that the market is adjusting its expectations for Zaggle's future performance.