MakeMyTrip Limited Fundamental Analysis
MakeMyTrip Limited (MMYT) shows weak financial fundamentals with a PE ratio of 82.36, profit margin of 4.96%, and ROE of -38.21%. The company generates $1.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 256.4/100 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
WeakMMYT struggles to sustain strong margins.
Key Financial Metrics
Is MMYT Expensive or Cheap?
P/E Ratio
MMYT trades at 82.36 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MMYT's PEG of -2.00 indicates potential undervaluation.
Price to Book
The market values MakeMyTrip Limited at -62.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.58 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 $4.96 as profit after all expenses.
Operating Margin
Core operations generate 14.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-38.21 in profit for every $100 of shareholder equity.
ROA
MakeMyTrip Limited generates $2.95 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 $174.72M, showing steady but balanced cash generation.
Free Cash Flow
MakeMyTrip Limited generates strong free cash flow of $132.94M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.40 in free cash annually.
FCF Yield
MMYT converts 3.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
82.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
-62.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-20.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.38
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How MMYT Stacks Against Its Sector Peers
| Metric | MMYT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 82.36 | 24.16 | Worse (Expensive) |
| ROE | -38.21% | 1194.00% | Weak |
| Net Margin | 4.96% | 2564.00% | Weak |
| Debt/Equity | -20.75 | 0.70 | Strong (Low Leverage) |
| Current Ratio | 3.05 | 2.83 | Strong Liquidity |
| ROA | 2.95% | -8257.00% (disorted) | Weak |
MMYT outperforms its industry in 2 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
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary