Valuation Metrics Indicate Premium Pricing
TVS Motor Co.’s price-to-earnings (PE) ratio stands at a striking 66.7, significantly higher than the industry average and most of its direct competitors. This elevated PE ratio implies that investors are willing to pay a substantial premium for the company’s earnings, reflecting high growth expectations. The price-to-book (P/B) value of 21.44 further underscores the market’s optimism, indicating that the stock is trading at over twenty times its net asset value.
Enterprise value multiples also paint a similar picture. The EV to EBIT ratio of 29.33 and EV to EBITDA of 24.7 are considerably above the levels seen in comparable companies such as Bajaj Auto and Hero MotoCorp, which trade at more moderate multiples. These figures s...
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