Valuation Metrics and Financial Ratios
Aavas Financiers’ price-to-earnings (PE) ratio stands at approximately 23.7, which is notably higher than many of its peers in the housing finance industry. The price-to-book (P/B) ratio is around 3.1, indicating that the stock trades at over three times its book value. Enterprise value to EBITDA (EV/EBITDA) is close to 15, reflecting a relatively rich valuation compared to the sector average. The PEG ratio, which adjusts the PE ratio for earnings growth, is near 1.8, suggesting that the stock’s price growth expectations are moderately high but not excessive.
Return on capital employed (ROCE) and return on equity (ROE) are key profitability indicators for Aavas Financiers, recorded at 10.1% and 13.0% respectively. These figures de...
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