Understanding the Valuation Metrics
Mena Mani Inds. exhibits several unusual valuation ratios. The price-to-earnings (PE) ratio stands at a negative figure, reflecting losses rather than profits, which is a significant red flag for traditional valuation methods. Similarly, the price-to-book (P/B) value is deeply negative, indicating that the company’s book value is negative or impaired. Enterprise value (EV) multiples such as EV to EBIT and EV to EBITDA are also negative, further signalling operational challenges and negative earnings before interest and taxes or depreciation.
However, the EV to capital employed ratio is positive at 5.81, and EV to sales is 3.73, suggesting that relative to its sales and capital base, the company’s valuation is not excessively high. Th...
Read More












