Valuation Metrics and What They Indicate
Escorts Kubota’s price-to-earnings (PE) ratio stands at approximately 28.9, which is elevated compared to many companies but not excessively high for a growth-oriented midcap in the automobile industry. The price-to-book (P/B) ratio of 3.55 suggests investors are willing to pay a premium over the company’s net asset value, reflecting confidence in its future earnings potential and asset utilisation.
The enterprise value to EBITDA (EV/EBITDA) ratio of 27.0 is on the higher side, indicating that the stock is priced richly relative to its earnings before interest, taxes, depreciation, and amortisation. Similarly, the EV to EBIT ratio of 33.3 reinforces this view of a premium valuation. However, the PEG ratio of 0.93, which adjusts ...
Read More











