Valuation Metrics Indicate Fair Pricing
Resourceful Auto’s price-to-earnings (PE) ratio stands at approximately 12.8, which is notably lower than many of its industry peers. For context, Bajaj Auto and Eicher Motors trade at PE ratios of around 30 and 38 respectively, while Hero MotoCorp and Atul Auto, considered attractive valuations, have PE ratios in the low to mid-20s and mid-40s. The company’s price-to-book (P/B) value is below 1, at 0.96, suggesting the stock is trading close to its book value, a sign that the market is not overpaying for its net assets.
Enterprise value multiples further reinforce this assessment. Resourceful Auto’s EV to EBIT and EV to EBITDA ratios hover near 13 and 12.3 respectively, which are significantly more conservative compared to peers...
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