Valuation Metrics and Financial Strength
Hyundai Motor India trades at a price-to-earnings (PE) ratio of approximately 33.9, which is relatively high compared to the broader automobile sector but aligns closely with its direct peer Maruti Suzuki, which has a PE of around 34.2. The company’s price-to-book value stands at 11.03, indicating investors are paying a significant premium over the book value, reflecting expectations of strong future earnings growth.
Enterprise value multiples such as EV to EBIT (27.13) and EV to EBITDA (20.80) further suggest a premium valuation, though these are somewhat justified by Hyundai’s impressive return on capital employed (ROCE) of 59.5% and return on equity (ROE) of 32.6%. These figures highlight the company’s efficient capital utili...
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