Understanding Trio Merc. Trad.’s Valuation Metrics
At first glance, Trio Merc. Trad.’s valuation appears counterintuitive. The company’s price-to-earnings (PE) ratio stands at a negative figure, signalling losses rather than profits. Specifically, the PE ratio is approximately -33, which is unusual and typically indicates negative earnings. Similarly, the enterprise value to EBIT and EBITDA ratios are also negative, reflecting operational challenges. The price-to-book value is notably low at 0.19, suggesting the stock is trading well below its book value, which could imply undervaluation on a pure asset basis.
However, these figures must be interpreted with caution. Negative profitability ratios such as return on capital employed (ROCE) at -3.72% and return on equity (...
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