Understanding the Valuation Metrics
At first glance, Manipal Finance Corporation’s valuation ratios appear unusual. The company reports a negative price-to-earnings (PE) ratio and price-to-book (P/B) value, reflecting recent losses and negative equity book value. Its enterprise value to EBIT and EBITDA ratios are also negative, indicating operating losses. These figures typically signal caution for investors, as they suggest the company is not currently profitable on an operating or net income basis.
However, the valuation grade has improved to “attractive” as of early December 2025, signalling that the market may be pricing in a turnaround or undervaluation relative to intrinsic value. The EV to sales ratio stands at a positive 12.24, which, while elevated, is not unc...
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