Valuation Metrics Paint a Contradictory Picture
At first glance, Wagend Infra’s price-to-earnings (PE) ratio stands out as deeply negative, signalling losses rather than profits. This negative PE ratio, combined with an enterprise value to EBITDA multiple that is also negative, suggests the company is currently unprofitable. Meanwhile, the price-to-book (P/B) ratio is below 1, indicating the stock trades at less than its book value, which can sometimes signal undervaluation. However, this metric alone is insufficient to conclude the stock is cheap, especially given the company’s weak returns on capital employed (ROCE) and equity (ROE), both negative and indicative of operational inefficiencies and value destruction.
Profitability and Returns: A Cause for Concer...
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