A Fresh Look at MakeMyTrip (NasdaqGS:MMYT) Valuation as Analyst Forecasts Signal Higher Growth

MakeMyTrip (NasdaqGS:MMYT) is attracting attention as the market gears up for its upcoming earnings report. Analyst estimates indicate higher earnings and revenue compared to last year, suggesting growing confidence in the company’s performance.

See our latest analysis for MakeMyTrip.

MakeMyTrip’s share price has pulled back significantly this year, with a year-to-date decline of nearly 39% despite upbeat forecasts and analyst optimism around its earnings potential. While recent market momentum has faded, the company’s strong three- and five-year total shareholder returns of 155% and 189% indicate a solid long-term growth story, even through the current volatility.

If you’re interested in what other fast-rising companies with strong management are getting noticed right now, it’s worth taking a look at fast growing stocks with high insider ownership.

With MakeMyTrip’s shares trading well below recent highs and analyst targets suggesting significantly higher valuations, the question now is whether the current price represents a genuine bargain or if the market has already accounted for all anticipated growth.

Most Popular Narrative: 36.2% Undervalued

With MakeMyTrip’s last close at $71.39 and the most widely followed narrative assigning a fair value of $111.90, there is a substantial upside gap, making the reasoning behind this price target essential reading for investors.

Ongoing investment in product innovation, particularly in AI-powered personalization and user experience improvements, positions MakeMyTrip for higher conversion rates, better customer retention, and ultimately supports expanding net margins through improved operating leverage. Increasing integration of ancillary services (hotels, home stays, experiences, insurance, and ground transport) creates diversified and higher-margin revenue streams, which are showing high double-digit growth and driving improvements in overall net margins and adjusted operating profit.

Read the complete narrative.

Want to know the strategic pillars fueling this bold valuation? This narrative hinges on assumptions about rapid earnings growth, rising margins, and a future profit multiple that rivals high-flying tech stocks. Wondering what surprising projections underpin it? Click through to see which levers are expected to move MakeMyTrip’s future, and why the fair value could be so much higher.

Result: Fair Value of $111.90 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing weakness in domestic air travel and the risk of slower demand recovery could challenge these bullish expectations in the months ahead.

Find out about the key risks to this MakeMyTrip narrative.

Another View: What Do Market Ratios Say?

While analysts see upside based on forecast growth, the company's current price-to-earnings ratio of 88.8x is much higher than peers at 19.9x and above its fair ratio of 35.9x. This suggests the market is already factoring in very aggressive expectations. Could this raise the risk if future growth misses?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own MakeMyTrip Narrative

If you have a different perspective or want to dive deeper into the numbers yourself, you can shape your own view in just a few minutes. Do it your way.

A great starting point for your MakeMyTrip research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for More Winning Investment Ideas?

Smart investors stay ahead by tracking top themes and breakthrough opportunities. Don’t let the next big trend pass you by. Shake up your watchlist with these proven strategies:

• Unearth strong yields with reliable income by tapping into these 15 dividend stocks with yields > 3%, featuring stocks delivering 3%+ dividends and solid fundamentals.
• Capitalize on the AI revolution and see which companies are shaking up entire industries through these 25 AI penny stocks.
• Position yourself for growth as undervalued businesses emerge with fresh momentum by checking out these 915 undervalued stocks based on cash flows.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com