Why Bernstein is sticking to Eternal’s ₹370 target despite leadership reshuffle

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Bernstein has stuck to its ₹370 target price for Eternal, Zomato’s parent, saying its valuation approach reflects where the company is in its growth journey.

Instead of using a sales based metric (enterprise value to sales), the brokerage is valuing the company based on its operating earnings (EV-to-adjusted earnings before interest, tax, depreciation, and amortisation), which it believes is more appropriate at this stage.

According to Jignanshu Gor, Director & Senior Research Analyst at Bernstein, the brokerage is applying a 35x (times) multiple on…



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Why Bernstein is sticking to Eternal’s ₹370 target despite leadership reshuffle


Bernstein has stuck to its ₹370 target price for Eternal, Zomato’s parent, saying its valuation approach reflects where the company is in its growth journey.

Instead of using a sales based metric (enterprise value to sales), the brokerage is valuing the company based on its operating earnings (EV-to-adjusted earnings before interest, tax, depreciation, and amortisation), which it believes is more appropriate at this stage.

According to Jignanshu Gor, Director & Senior Research Analyst at Bernstein, the brokerage is applying a 35x (times) multiple on…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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