Valuation Metrics Indicate Undervaluation
At a price-to-earnings (PE) ratio of approximately 23.7, ION Exchange trades at a multiple that is modest relative to many of its industry peers. The price-to-book (P/B) value stands at 3.86, reflecting a reasonable premium over book value given the company’s strong return metrics. Notably, the enterprise value to EBITDA (EV/EBITDA) ratio is 17.16, which is significantly lower than several competitors in the utilities and engineering sectors, many of whom trade at multiples exceeding 30 or even 40.
The company’s return on capital employed (ROCE) of 18.5% and return on equity (ROE) of 16.3% demonstrate efficient capital utilisation and profitability, supporting the valuation. These figures suggest that ION Exchange is generating...
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