The 5.0% return this week takes MakeMyTrip’s (NASDAQ:MMYT) shareholders five-year gains to 378%

For many, the main point of investing in the stock market is to achieve spectacular returns. And highest quality companies can see their share prices grow by huge amounts. For example, the MakeMyTrip Limited (NASDAQ:MMYT) share price is up a whopping 378% in the last half decade, a handsome return for long term holders. This just goes to show the value creation that some businesses can achieve. On top of that, the share price is up 28% in about a quarter. But this move may well have been assisted by the reasonably buoyant market (up 13% in 90 days).

On the back of a solid 7-day performance, let’s check what role the company’s fundamentals have played in driving long term shareholder returns.

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 way to examine how market sentiment has changed over time is to look at…