Understanding the Valuation Metrics
Indl. Inv. Trust’s valuation indicators present an unusual scenario. The price-to-earnings (PE) ratio stands at a negative figure, signalling losses rather than profits, while the price-to-book (P/B) ratio is below 1 at 0.84, which traditionally suggests undervaluation. However, the enterprise value to EBITDA and EBIT ratios are deeply negative, reflecting operational challenges and negative earnings before interest, taxes, depreciation, and amortisation.
Return on capital employed (ROCE) and return on equity (ROE) are both negative, at -1.75% and -1.27% respectively, indicating the company is currently not generating returns on its capital investments or equity base. This contrasts sharply with many peers in the NBFC sector, where p...
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