While MakeMyTrip Limited (NASDAQ:MMYT) shareholders are probably generally happy, the stock hasn’t had particularly good run recently, with the share price falling 26% in the last quarter. But over five years returns have been remarkably great. In that time, the share price has soared some 499% higher! Arguably, the recent fall is to be expected after such a strong rise. The most important thing for savvy investors to consider is whether the underlying business can justify the share price gain.
While this past week has detracted from the company’s five-year return, let’s look at the recent trends of the underlying business and see if the gains have been in alignment.
See our latest analysis for MakeMyTrip
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare…
