Based on conventional valuation metrics, investors must rely for the stock at the moment, however, deep in the pocket: With sales of 83.6 million U.S. dollars on 31 March 2010, which ended fiscal year 2010, the stock at the moment with the 12 times the turnover assessed in the last four quarters. Purely statistical point of view, the purchase of shares does with such a high price to sales ratios in the twelve months thereafter (see also refer to the studies of James P. O `Shaughnessy, in his reference book" What Works on Wall Street ") returns to disastrous .
The determination of the price-earnings ratio still makes no sense because the company has managed only in the last quarter of the jump in profitability. Although MakeMyTrip currently has an excellent market position in India, competition is fierce. Global competitors like Expedia and Travelocity, which have a significantly higher financial strength push, with power in the Indian market. In addition, the company has to defend the local adversaries Yatra.com and Cleartrip.com. This should shrink the profit margins in the coming years.
Nevertheless, the range was Online-Reisen/Tourismus for investors in the past an attractive pavement. Ctrip.com Besides there are U.S. companies with Priceline.com and Travelzoo, and the German travel software provider i: FAO, several success stories. The odds that the newcomer grows rapidly in the high rating, are also not bad: In the June quarter, the number of bookings increased by 65 percent. Thus MakeMyTrip grew six times as fast as the Indian online travel market as a whole. The guys around CEO Deep Kalra therefore continue to gain market share.
Another advantage is that the IPO net proceeds of approximately EUR 50 million flushed into the coffers of the company (only about a quarter of the five million shares issued comes from the existing shareholders). Threaten in the foreseeable future capital increases, which could lead to dilution effects. And as for the evaluation: Comparing the price to sales ratio of MakeMyTrip with the shares of Ctrip.com is rated downright cheap. Because on the basis of the profit in the past four quarters, the Chinese are currently using the 17-times the revenue assessed.
The determination of the price-earnings ratio still makes no sense because the company has managed only in the last quarter of the jump in profitability. Although MakeMyTrip currently has an excellent market position in India, competition is fierce. Global competitors like Expedia and Travelocity, which have a significantly higher financial strength push, with power in the Indian market. In addition, the company has to defend the local adversaries Yatra.com and Cleartrip.com. This should shrink the profit margins in the coming years.
Nevertheless, the range was Online-Reisen/Tourismus for investors in the past an attractive pavement. Ctrip.com Besides there are U.S. companies with Priceline.com and Travelzoo, and the German travel software provider i: FAO, several success stories. The odds that the newcomer grows rapidly in the high rating, are also not bad: In the June quarter, the number of bookings increased by 65 percent. Thus MakeMyTrip grew six times as fast as the Indian online travel market as a whole. The guys around CEO Deep Kalra therefore continue to gain market share.
Another advantage is that the IPO net proceeds of approximately EUR 50 million flushed into the coffers of the company (only about a quarter of the five million shares issued comes from the existing shareholders). Threaten in the foreseeable future capital increases, which could lead to dilution effects. And as for the evaluation: Comparing the price to sales ratio of MakeMyTrip with the shares of Ctrip.com is rated downright cheap. Because on the basis of the profit in the past four quarters, the Chinese are currently using the 17-times the revenue assessed.
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