Valuation Metrics Indicate Fair Pricing
Ramco Inds. trades at a price-to-earnings (PE) ratio of approximately 12.4, which is modest compared to many peers in the miscellaneous sector. A PE ratio in this range often suggests that the stock is reasonably priced relative to its earnings. The price-to-book (P/B) value stands at 0.66, indicating the stock is trading below its book value, which can be a sign of undervaluation or market scepticism about asset utilisation.
Enterprise value (EV) multiples such as EV to EBIT and EV to EBITDA are 17.8 and 14.6 respectively. These figures are somewhat elevated but still within a range that does not scream overvaluation, especially when considering the company’s low PEG ratio of 0.15. The PEG ratio, which adjusts the PE ratio for g...
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