Is Yamuna Syndicate overvalued or undervalued?

Jun 09 2025 04:20 PM IST
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As of July 18, 2020, Yamuna Syndicate's valuation has deteriorated to "does not qualify," indicating overvaluation with a high PE Ratio of 10.12, elevated EV to EBIT and EV to EBITDA ratios, and a low return on equity of 8.94%, despite strong long-term performance compared to the Sensex.
As of 18 July 2020, the valuation grade for Yamuna Syndicate has moved from fair to does not qualify, indicating a significant deterioration in its valuation standing. The company appears to be overvalued given its current metrics. Key ratios include a PE Ratio of 10.12, an EV to EBIT of 975.35, and an EV to EBITDA of 912.42, which suggest that the company is not generating sufficient earnings relative to its high enterprise value.

When compared to peers, Yamuna Syndicate's PE Ratio of 10.12 is notably high, especially against its own EV to EBITDA ratio of 912.42, which is significantly elevated compared to industry norms. The company’s return on equity (ROE) stands at 8.94%, which is relatively low, further supporting the notion of overvaluation. Additionally, while the stock has outperformed the Sensex over the long term, with a 5-year return of 341.36% compared to the Sensex's 142.96%, the recent year-to-date performance of -11.97% against the Sensex's 5.58% indicates potential concerns regarding its current valuation.
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