MakeMyTrip Limited Fundamental Analysis (NASDAQ: MMYT)
MakeMyTrip Limited (NASDAQ: MMYT) shows weak financial fundamentals with a PE ratio of 172.00, profit margin of 3.23%, and ROE of -14.56%. 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 89.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
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 172.00 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MMYT's PEG of -2.83 indicates potential undervaluation.
Price to Book
The market values MakeMyTrip Limited at -17.23 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 20.50 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 $3.23 as profit after all expenses.
Operating Margin
Core operations generate 15.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-14.56 in profit for every $100 of shareholder equity.
ROA
MakeMyTrip Limited generates $1.92 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 $158.98M, showing steady but balanced cash generation.
Free Cash Flow
MakeMyTrip Limited produces free cash flow of $91.52M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.97 in free cash annually.
FCF Yield
MMYT converts 1.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
172.003
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
-17.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.15
vs 25 benchmark
ROA
Return on assets percentage
0.02
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 | 172.00 | 26.29 | Worse (Expensive) |
| ROE | -14.56% | 966.00% | Weak |
| Net Margin | 3.23% | -4927.00% (disorted) | Weak |
| Debt/Equity | -5.00 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 3.13 | 2.32 | Strong Liquidity |
| ROA | 1.92% | 295.00% | 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
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