Valuation Metrics and What They Indicate
Deepak Nitrite’s price-to-earnings (PE) ratio stands at approximately 39.4, which is notably higher than many traditional benchmarks for fair valuation in the chemical industry. The price-to-book (P/B) ratio is 3.8, signalling that the market values the company at nearly four times its net asset value. Additionally, the enterprise value to EBITDA (EV/EBITDA) ratio is close to 25, reflecting a premium valuation relative to earnings before interest, taxes, depreciation, and amortisation.
These multiples suggest that investors are pricing in strong growth expectations or superior profitability compared to peers. However, the company’s return on capital employed (ROCE) and return on equity (ROE) are modest at 10.5% and 9.6% respecti...
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