Valuation Metrics and What They Indicate
C J Gelatine’s price-to-earnings (PE) ratio stands at a notably high 67.5, signalling that investors are paying a premium for each unit of earnings. This is considerably above the typical market average and suggests elevated expectations for future growth. The price-to-book (P/B) ratio of 1.94 indicates the stock is trading nearly twice its book value, which is moderate but not excessive in the context of specialty chemicals.
The enterprise value to EBITDA (EV/EBITDA) ratio of 15.2 is also telling. While not as stretched as the PE ratio, it is higher than many traditional benchmarks, implying the market values the company’s operating cash flow at a premium. The EV to EBIT ratio of 22 further supports this view, reflecting expect...
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