Edelweiss Financial Stock Price Analysis and Quick Research Report. Is Edelweiss Financial an attractive stock to invest in?

Around 2% of India's total population invests in financial assets. The mutual fund industry's penetration in India is close to 7% (Based on the number of PAN cardholders). This under penetration offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

Edelweiss Financial stock price today is Rs 107.02. To understand the functions of the Edelweiss Financial better, you must go through the following points:

Key Financials –

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of Edelweiss Financial is Rs 695.212 Cr and the compounded growth of profit in the past 3 years is -0.98706554247604 %. The PAT margin of Edelweiss Financial is -499.696 %.

• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Edelweiss Financial , the EPS declined by -70.9068 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): Edelweiss Financial has a average ROE track record. The ROE of Edelweiss Financial is at 11.0257 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Edelweiss Financial is worth at the current levels at Rs 107.02. The stock is trading at a current P/E ratio of 8.2246 and the average historical P/E for the last 5 years was 12.9675799027899.

• P/B ratio can be one of the best metrics to value such companies. Currently, Edelweiss Financial is trading at a P/B of 1.8345 . The average historical P/B of Edelweiss Financial for the last 5 years was 1.03928540513795. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

• Share Price: - The current share price of Edelweiss Financial is Rs 107.02. One can use valuation calculators of ticker to know if Edelweiss Financial share price is undervalued or overvalued.