Emerald Tyre Manufacturers Valuation

Is ETML undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ETML when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ETML (₹186.9) is trading above our estimate of fair value (₹62.86)

Significantly Below Fair Value: ETML is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ETML?

Key metric: As ETML is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ETML. This is calculated by dividing ETML's market cap by their current earnings.
What is ETML's PE Ratio?
PE Ratio	29.8x
Earnings	₹122.36m
Market Cap	₹3.64b

ETML key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.6x
Enterprise Value/EBITDA	15.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does ETML's PE Ratio compare to its peers?

The above table shows the PE ratio for ETML vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	31.2x
500890 Modi Rubber	15x	n/a	₹3.3b
509162 Indag Rubber	43x	n/a	₹5.1b
542013 Dolfin Rubbers	39.7x	n/a	₹2.1b
TOLINS Tolins Tyres	27.1x	n/a	₹8.6b
ETML Emerald Tyre Manufacturers	29.8x	n/a	₹3.6b

Price-To-Earnings vs Peers: ETML is good value based on its Price-To-Earnings Ratio (29.8x) compared to the peer average (31.2x).

Price to Earnings Ratio vs Industry

How does ETML's PE Ratio compare vs other companies in the IN Auto Components Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap
513262 Steel Strips Wheels	4.9x	-31.3%	US$383.25m
INNOVATIVE Innovative Tyres & Tubes	0.3x	n/a	US$1.22m
505100 India Radiators	0.9x	n/a	US$98.77k
523415 Coventry Coil-O-Matic (Haryana)	0.9x	n/a	US$88.40k

No more companies available in this PE range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ETML is good value based on its Price-To-Earnings Ratio (29.8x) compared to the Indian Auto Components industry average (33.4x).

Price to Earnings Ratio vs Fair Ratio

What is ETML's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ETML PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	29.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ETML's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.