Valuation Metrics and What They Indicate
Indo Farm Equip. trades at a price-to-earnings (PE) ratio of approximately 44.7, which is significantly higher than the broader market average and indicates a premium valuation. The price-to-book (P/B) ratio stands near 1.93, suggesting the stock is priced almost twice its book value. Enterprise value multiples such as EV to EBIT and EV to EBITDA are 28.8 and 22.2 respectively, reflecting elevated expectations for earnings relative to the company’s enterprise value. Meanwhile, the EV to sales ratio is 2.85, which is moderate but still on the higher side for the automobile industry.
Return metrics reveal a modest return on capital employed (ROCE) of 6.48% and a return on equity (ROE) of 4.31%, both of which are relatively low com...
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