Is Aviva Industries overvalued or undervalued?
As of November 12, 2024, Aviva Industries is considered "risky" and overvalued, with poor financial ratios including a PE ratio of -6.81 and a low ROE of -0.97%, despite a recent stock performance that outpaced the Sensex.
As of 12 November 2024, Aviva Industries has moved from a grade of "does not qualify" to "risky." The company is currently assessed as overvalued. Key ratios include a PE ratio of -6.81, an EV to EBITDA of -7.55, and a Price to Book Value of 2.19. Compared to its peers, Aviva's valuation metrics are significantly lower; for instance, MMTC has a PE ratio of 119.39 and an EV to EBITDA of -70.04, while PTC India, deemed very attractive, has a PE of 9.02 and an EV to EBITDA of 4.14.Despite a recent stock performance that outpaced the Sensex with a 10.34% return over the past week compared to the Sensex's 1.40%, the underlying financial ratios suggest that Aviva Industries is not positioned favorably in the market. The negative earnings ratios and low return on equity (ROE) of -0.97% further reinforce the conclusion of overvaluation.
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