Z47
October 3, 2023

#IPO Learning 4: Valuation multiples are all relative

•Companies think too much about size, or market share

•Growth, combined with operating return on capital is far more valuable

•A good business or a good management will always command higher valuations

•A 50 P/E stock may be cheaper than a 15 P/E stock because each company’s growth, return on capital employed and cost of equity is different•Implied P/E is different from Market P/E

For more information, write to us: namaste@Z47.com.
Stay connected with Z47.

Watch more such podcasts

Z47
April 2, 2026

15 years. 3 startups. Here's what Utkrishta learned | Unstarted Ep 6

Z47
March 19, 2026

Not IIT, Not McKinsey. How the Foxtale Founder Built Her Own Way | Romita Mazumdar | Unstarted

Z47
March 12, 2026

Are founders born or made? | Aman Gupta, boAt | UnStarted

Z47
October 3, 2023

#IPO Learning 4: Valuation multiples are all relative

Article
Listen to article

•Companies think too much about size, or market share

•Growth, combined with operating return on capital is far more valuable

•A good business or a good management will always command higher valuations

•A 50 P/E stock may be cheaper than a 15 P/E stock because each company’s growth, return on capital employed and cost of equity is different•Implied P/E is different from Market P/E

We are excited about the innovation and growth opportunities in this sector.

If you are considering building in the footwear space, we’d love to chat.
Drop us a line at consumer@matrixpartners.in

Learnt something new? Follow us!

Read Previous Article On Land & Expand
Read Next Article On Land & Expand