Understanding Srestha Finvest’s Valuation Metrics
At first glance, Srestha Finvest’s valuation ratios present a complex picture. The company’s price-to-earnings (PE) ratio is negative, reflecting losses rather than profits, which is a red flag for many investors. Its price-to-book (P/B) ratio stands at a low 0.29, suggesting the stock is trading well below its book value. However, this low P/B ratio must be interpreted cautiously given the company’s negative returns on capital employed (ROCE) and equity (ROE), which are -47.77% and -36.37% respectively. These figures indicate that the company is currently destroying shareholder value rather than creating it.
Enterprise value (EV) multiples such as EV to EBIT and EV to EBITDA are also negative, reinforcing the notion of...
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