Valuation Metrics and Market Position
Paragon Finance trades at a price-to-earnings (PE) ratio of approximately 26.3, which positions it in the mid-range relative to its peers. Its price-to-book (P/B) value stands at 0.68, suggesting the stock is priced below its book value, a factor often interpreted as undervaluation. However, the company’s enterprise value (EV) to EBIT and EBITDA ratios are negative, indicating operational losses or accounting nuances that investors should scrutinise carefully.
Despite these negative EV multiples, the EV to capital employed ratio aligns closely with the P/B ratio at 0.68, reinforcing the notion that the market values the company conservatively relative to its capital base. The EV to sales ratio is notably high at nearly 17, which co...
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