Valuation Metrics and Financial Health
Baba Arts trades at a price-to-earnings (PE) ratio of approximately 28, which places it in the expensive category relative to typical market standards. Its price-to-book value stands at 1.25, indicating that the stock is priced modestly above its book value. The enterprise value to EBIT and EBITDA ratios are both around 28.6, signalling a premium valuation compared to earnings before interest, taxes, depreciation, and amortisation.
However, the company’s return on capital employed (ROCE) and return on equity (ROE) are relatively low at 3.63% and 4.48% respectively. These figures suggest that Baba Arts is generating modest returns on its investments and shareholder equity, which may not fully justify the elevated valuation multiple...
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