MakeMyTrip Limited
MakeMyTrip Limited Fundamental Analysis
MakeMyTrip Limited (MMYT) shows moderate financial fundamentals with a PE ratio of 96.75, profit margin of 5.46%, and ROE of 31.18%. The company generates $1.0B in annual revenue with strong year-over-year growth of 25.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 136.1/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze MMYT's fundamental strength across five key dimensions:
Efficiency Score
WeakMMYT struggles to generate sufficient returns from assets.
Valuation Score
ModerateMMYT shows balanced valuation metrics.
Growth Score
ModerateMMYT shows steady but slowing expansion.
Financial Health Score
ExcellentMMYT maintains a strong and stable balance sheet.
Profitability Score
ModerateMMYT maintains healthy but balanced margins.
Key Financial Metrics
Is MMYT Expensive or Cheap?
P/E Ratio
MMYT trades at 96.75 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MMYT's PEG of -4.05 indicates potential undervaluation.
Price to Book
The market values MakeMyTrip Limited at -19.36 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 21.82 times EBITDA. This signals the market has high growth expectations.
How Well Does MMYT Make Money?
Net Profit Margin
For every $100 in sales, MakeMyTrip Limited keeps $5.46 as profit after all expenses.
Operating Margin
Core operations generate 14.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.18 in profit for every $100 of shareholder equity.
ROA
MakeMyTrip Limited generates $3.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MakeMyTrip Limited produces operating cash flow of $218.09M, showing steady but balanced cash generation.
Free Cash Flow
MakeMyTrip Limited generates strong free cash flow of $218.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.29 in free cash annually.
FCF Yield
MMYT converts 4.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
96.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
-19.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How MMYT Stacks Against Its Sector Peers
| Metric | MMYT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 96.75 | 24.93 | Worse (Expensive) |
| ROE | 31.18% | 1149.00% | Weak |
| Net Margin | 5.46% | 749.00% | Weak |
| Debt/Equity | -5.93 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 1.85 | 9.21 | Neutral |
| ROA | 3.05% | 1274.00% | Weak |
MMYT outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MakeMyTrip Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
78.55%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
119.83%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
253.44%
Industry Style: Cyclical, Growth, Discretionary
High Growth