Valuation Metrics Indicate a Premium
Arihant Academy currently trades at a price-to-earnings (PE) ratio close to 48, which is significantly higher than typical market averages and many of its peers. This elevated PE ratio indicates that investors are willing to pay a substantial premium for each rupee of earnings, signalling expectations of strong future growth. The price-to-book value ratio stands at over 10, underscoring the market’s valuation of the company’s net assets at a considerable premium.
Enterprise value multiples further reinforce this premium stance. The EV to EBIT ratio exceeds 60, while EV to EBITDA is nearly 40, both figures well above industry norms. These multiples suggest that the market anticipates robust operational profitability and cash flow gen...
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