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Price to Book Ratio PB vs Industry: INDIAMART is overvalued based on its PB Ratio (12.8x) compared to the IN Trade Distributors industry average (1.1x).
How do you analyze if a stock is overvalued?
A stock is thought to be overvalued when its current price doesn’t line up with its P/E ratio or earnings forecast. If a stock’s price is 50 times earnings, for instance, it’s likely to be overvalued compared to one that’s trading for 10 times earnings.
Is IndiaMART good to buy?
IndiaMART is an online marketplace which brings together buyers and suppliers. However, in case there is a complaint against a supplier, IndiaMART conducts a proper check and takes appropriate action. Additionally, we recommend buyers to source products only from verified sellers, preferably with TrustSEAL.
How do you know if a stock is overvalued or undervalued?
The P/E ratio Whereas earnings per share is the amount of a company’s net profit divided by the number of outstanding shares: The higher the P/E ratio, the more overvalued a stock may be. Conversely, a lower P/E might indicate a more undervalued stock.
What is the future of Indiamart?
Indiamart Intermesh Ltd. quote is equal to 7150.800 INR at 2021-12-16. Based on our forecasts, a long-term increase is expected, the “542726” stock price prognosis for 2026-12-11 is 10058.00 INR. With a 5-year investment, the revenue is expected to be around +40.66\%.
Is Overvalued stock good or bad?
Why Overvalued Stocks Matter A stock which is considered to be overvalued is likely to experience a price decline and return to a level which better reflects its financial status and fundamentals. Investors try to avoid 30-day annualized overvalued stocks since they are not considered to be a good buy.
What is the future of IndiaMART?
What does it mean if stock is overvalued?
An overvalued stock is one that trades at a price significantly higher than its fundamental earnings and revenue outlook suggests it should. It may also trade at a price-to-earnings multiple higher than its peers when adjusted for future growth.