India-listed multinational arms outclass parent firms' valuations

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It's not only the Indian markets that command a valuation premium over their global peers; shares of subsidiaries of India-listed multinational companies (MNCs) also trade at rich valuations compared to their parent companies.

An analysis of 12-month forward price-to-earnings (P/E) and price-to-book (P/B) multiples of domestically listed MNCs shows that most quotes have a premium ranging from 2.1x to 6x that of their parent.

Similarly, P/B, in most cases, is significantly higher in the domestic market.

Related Keywords

India , Hindustan , India General , Japan , South Korea , United States , Japanese , South Korean , American , Pranjal Srivastava , Maruti Suzuki , Indian Mncs , Dominic Xavier Rediff , Seshadri Sen , Alphaniti Fintech , Suzuki Motor Corporation , Whirlpool Corporation , Hyundai Motor Company , Emkay Global Financial Services , Hyundai , Hyundai Motor India , Motor India , Emkay Global Financial , Maruti Suzuki India , Hindustan Unilever ,

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