Is Caesarstone Ltd. overvalued or undervalued?
As of March 1, 2023, Caesarstone Ltd. is considered undervalued and risky due to its low price-to-book ratio of 0.25 and EV to EBITDA ratio of 0.80, despite a negative P/E ratio and a -15.49% ROE, while its stock has underperformed significantly, down 58.43% over the past year compared to a 10.26% gain in the S&P 500.
As of 1 March 2023, the valuation grade for Caesarstone Ltd. has moved from very expensive to risky. The company is currently considered undervalued, given its significant price-to-book ratio of 0.25 and an EV to EBITDA ratio of 0.80, despite being loss-making with a negative P/E ratio. The return on equity (ROE) stands at -15.49%, indicating ongoing financial challenges.In comparison to its peers, Caesarstone Ltd. has a less favorable valuation profile than Centrus Energy Corp., which is rated attractive with a P/E of 30.18 and an EV to EBITDA of 30.12. Other peers like Ferroglobe PLC and Nexa Resources SA are also categorized as risky, with their respective EV to EBITDA ratios of 9.02 and 3.42. Notably, Caesarstone's stock has underperformed significantly over the past year, down 58.43%, compared to a 10.26% gain in the S&P 500, reinforcing the notion of its current undervaluation amidst broader market trends.
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