Valuation Metrics and What They Indicate
Muthoot Capital Services currently trades at a price-to-earnings (PE) ratio of approximately 25.5, which is moderate within the Non-Banking Financial Company (NBFC) sector. Its price-to-book (P/B) ratio stands at a notably low 0.66, suggesting the stock is trading below its book value. This can be an indicator that the market is undervaluing the company’s net assets, potentially signalling a bargain for value-focused investors.
Further, the enterprise value to EBITDA (EV/EBITDA) ratio is around 10.2, which is relatively reasonable compared to many peers in the NBFC space. The EV to capital employed ratio is below 1, indicating that the company’s valuation relative to the capital it employs is conservative. These multiples collec...
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