MakeMyTrip Return On Equity vs. Price To Sales
| MY1 Stock | EUR 107.25 1.35 1.24% |
For MakeMyTrip profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MakeMyTrip to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MakeMyTrip Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MakeMyTrip's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MakeMyTrip Limited over time as well as its relative position and ranking within its peers.
MakeMyTrip |
MakeMyTrip Limited Price To Sales vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining MakeMyTrip's current stock value. Our valuation model uses many indicators to compare MakeMyTrip value to that of its competitors to determine the firm's financial worth. MakeMyTrip Limited is considered to be number one stock in return on equity category among its peers. It also is considered to be number one stock in price to sales category among its peers . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the MakeMyTrip's earnings, one of the primary drivers of an investment's value.MakeMyTrip Price To Sales vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
MakeMyTrip |
| = | -0.0235 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
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| = | 6.00 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
MakeMyTrip Price To Sales Comparison
MakeMyTrip is currently under evaluation in price to sales category among its peers.
MakeMyTrip Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in MakeMyTrip, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MakeMyTrip will eventually generate negative long term returns. The profitability progress is the general direction of MakeMyTrip's change in net profit over the period of time. It can combine multiple indicators of MakeMyTrip, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
MakeMyTrip Limited, an online travel company, provides travel products and solutions in India and internationally. The company was founded in 2000 and is based in Gurgaon, India. MakeMyTrip operates under Leisure classification in Germany and traded on Frankfurt Stock Exchange. It employs 3426 people.
MakeMyTrip Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on MakeMyTrip. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of MakeMyTrip position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the MakeMyTrip's important profitability drivers and their relationship over time.
Use MakeMyTrip in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if MakeMyTrip position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MakeMyTrip will appreciate offsetting losses from the drop in the long position's value.MakeMyTrip Pair Trading
MakeMyTrip Limited Pair Trading Analysis
The ability to find closely correlated positions to MakeMyTrip could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace MakeMyTrip when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back MakeMyTrip - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling MakeMyTrip Limited to buy it.
The correlation of MakeMyTrip is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as MakeMyTrip moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if MakeMyTrip Limited moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for MakeMyTrip can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your MakeMyTrip position
In addition to having MakeMyTrip in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Manufacturing Thematic Idea Now
Manufacturing
Companies that provide goods across residential, commercial and industrial construction such as machinery, tools, or lumber production. The Manufacturing theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Manufacturing Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in MakeMyTrip Stock
When determining whether MakeMyTrip Limited is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if MakeMyTrip Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Makemytrip Limited Stock. Highlighted below are key reports to facilitate an investment decision about Makemytrip Limited Stock:Check out Correlation Analysis. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
To fully project MakeMyTrip's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MakeMyTrip Limited at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include MakeMyTrip's income statement, its balance sheet, and the statement of cash flows.