Zomato's stock appears to be significantly overvalued based on its current valuation metrics. As of November 2024, its price-to-earnings (P/E) ratio is 314.57, which is a 637% premium compared to its peers' median P/E of 42.69. Similarly, its price-to-book (P/B) ratio is 10.94, far above the industry median of 4.46. Furthermore, Zomato's intrinsic value, as estimated by median historical valuation models, is around ₹64.22, whereas its current trading price is over ₹278.73. This implies a premium of 311%, indicating the stock may be significantly overpriced relative to its calculated fair value. Investors may want to exercise caution and consider the company's growth potential, operational profitability, and market trends before making decisions, as high valuations often carry increased risk.
Ok then which other company should i choose then???swiggy???so It's either profit making zomato or loss making swiggy...zomato has a leverage and that trumps p e...i guess...
LOL Who the hell are these Zomato peers trading at median PE of 42.69. Its peer is only Swiggy as it operates in a duopoly on its main business and Swiggy is loss making :D
Zomato will be next Byju
Zomato's stock appears to be significantly overvalued based on its current valuation metrics. As of November 2024, its price-to-earnings (P/E) ratio is 314.57, which is a 637% premium compared to its peers' median P/E of 42.69. Similarly, its price-to-book (P/B) ratio is 10.94, far above the industry median of 4.46.
Furthermore, Zomato's intrinsic value, as estimated by median historical valuation models, is around ₹64.22, whereas its current trading price is over ₹278.73. This implies a premium of 311%, indicating the stock may be significantly overpriced relative to its calculated fair value.
Investors may want to exercise caution and consider the company's growth potential, operational profitability, and market trends before making decisions, as high valuations often carry increased risk.
Ok then which other company should i choose then???swiggy???so It's either profit making zomato or loss making swiggy...zomato has a leverage and that trumps p e...i guess...
LOL Who the hell are these Zomato peers trading at median PE of 42.69. Its peer is only Swiggy as it operates in a duopoly on its main business and Swiggy is loss making :D