Valuation Metrics and Financial Health
Avax Apparels trades at a price-to-earnings (PE) ratio of approximately 14.8, which is moderate within the context of its industry peers. Its price-to-book (P/B) ratio stands at 3.10, indicating that the market values the company at over three times its book value. The enterprise value to EBIT (EV/EBIT) and EV to EBITDA ratios are 11.12 and 9.78 respectively, suggesting a reasonable premium for earnings before interest and taxes and earnings before interest, taxes, depreciation, and amortisation.
Notably, the company’s return on capital employed (ROCE) is a robust 24.25%, while return on equity (ROE) is 20.87%. These figures reflect efficient capital utilisation and strong profitability, which typically justify a higher valuation ...
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