MakeMyTrip (NasdaqGS:MMYT): Examining Valuation After Revenue Growth and Surprise Net Loss in Latest Earnings

MakeMyTrip (NasdaqGS:MMYT) just posted its latest quarterly and half-year earnings, revealing a rise in revenue along with a swing to a net loss for the second quarter. This shift in profitability caught investor attention.

See our latest analysis for MakeMyTrip.

Despite MakeMyTrip's latest revenue growth, the stock has seen momentum taper off recently, with a 14.9% decline in share price over the past month and a 32.9% drop year-to-date. Even so, long-term shareholders are still well ahead with a remarkable 221.8% five-year total shareholder return. This underlines both the volatility and potential inherent in the stock.

If you're watching shifts in travel and consumer tech, now could be the perfect chance to discover fast growing stocks with high insider ownership.

With MakeMyTrip's share price sliding this year despite growing revenues, is the market overlooking long-term potential, or is today’s price fully factoring in the company’s future growth and risks?

Most Popular Narrative: 34.1% Undervalued

MakeMyTrip’s last close at $78.04 sits well below the current fair value estimate of $118.44, according to the most widely followed narrative. This sizable gap positions the stock as a deep value opportunity and sets up a discussion of the rationale behind such a bullish view.

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.

Read the complete narrative.

Ever wondered what bold strategies could justify such a lofty valuation? This narrative hinges on game-changing revenue growth rates and margin expansion assumptions that are not typical for travel stocks. What critical forecasts and financial dynamics are fueling this optimism? Find out how future profits, margins, and scale-ups are woven into the story.

Result: Fair Value of $118.44 (UNDERVALUED)

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

However, sustained high customer acquisition costs or renewed competition from global OTAs could quickly undermine the bullish outlook that is currently priced into MakeMyTrip's shares.

Find out about the key risks to this MakeMyTrip narrative.

Another View: Market Multiples Signal Caution

While the fair value estimate presents MakeMyTrip as undervalued, looking at its current price-to-earnings ratio offers a stark contrast. At 97x, it is far higher than both the US Hospitality average (21.2x) and its peer group (16.4x), and well above the fair ratio of 36.7x. This premium could signal heightened valuation risk if growth disappoints, leaving investors to weigh the risk of paying up for future results. Could the stock’s price really hold up if expectations shift?

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

Build Your Own MakeMyTrip Narrative

If you see things differently or want to dig into the numbers on your own, you can craft a personalized 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.

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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.

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