Understanding One Mobikwik’s Valuation Metrics
One Mobikwik’s price-to-earnings (PE) ratio stands at a negative figure, signalling that the company is currently operating at a loss. This negative PE ratio is a critical indicator that earnings are not yet positive, which complicates traditional valuation methods. Additionally, the enterprise value to EBIT and EBITDA ratios are also negative, reinforcing the notion of ongoing operational losses.
The price-to-book value ratio of 3.49 suggests that the market values the company at nearly three and a half times its net asset value. While this multiple is not uncommon in high-growth fintech firms, it does imply that investors are pricing in significant future growth expectations.
However, the return on capital employe...
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