Valuation Metrics and Financial Health
At first glance, Spandana Sphoort’s price-to-earnings (PE) ratio stands at a negative figure, reflecting losses rather than profits. This negative PE, combined with a price-to-book value below 1, suggests the market values the company at less than its net asset value. However, this apparent bargain is offset by troubling profitability indicators. The company’s return on capital employed (ROCE) and return on equity (ROE) are deeply negative, signalling operational inefficiencies and shareholder value erosion.
Enterprise value multiples such as EV to EBIT and EV to EBITDA are also negative, underscoring the company’s current earnings challenges. Meanwhile, the EV to sales ratio of 2.75 indicates the market is pricing the company at ...
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