MakeMyTrip (MMYT) Could Be 14% Below Fair Value Following Q1 Results And Myra 2.0
Q1 earnings and product update set the tone for MakeMyTrip
MakeMyTrip (MMYT) is back in focus after Q1 FY 2027 results, the launch of its AI travel assistant Myra 2.0, and a confidential IPO filing for subsidiary MakeMyTrip India Limited.
See our latest analysis for MakeMyTrip.
At a share price of US$60.91, MakeMyTrip has seen a 35.45% 90 day share price return while its 1 year total shareholder return declined 35.57%, even though the 5 year total shareholder return is 130.20%.
If Q1 results and the Myra 2.0 launch have you thinking about broader travel and tech themes, this could be a good moment to check out 71 profitable AI stocks that aren't just burning cash.
After a sharp 90 day climb and a 1 year slide, MakeMyTrip now trades at a clear discount to the average analyst price target. Does that mark a genuine gap to fair value, or a justified reset before the IPO plans unfold?
Most Popular Narrative: 13.9% Undervalued
At a last close of $60.91 against a narrative fair value of about $70.73, MakeMyTrip is framed as undervalued, with that gap resting on specific growth and margin assumptions rather than sentiment alone.
Ongoing investment in product innovation, particularly in AI-powered personalization and user experience improvements, positions MakeMyTrip for higher conversion rates, better customer retention, and ultimately supports expanding net margins through improved operating leverage.
Curious what kind of earnings path and margin profile could support that higher fair value? The most followed narrative leans on faster revenue growth, rising profitability and a richer future earnings multiple. The real interest is how far those assumptions stretch, and how much perfection they quietly build in.
Result: Fair Value of $70.73 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, MakeMyTrip’s story could change quickly if competitive pressure squeezes commissions or if regional geopolitical shocks hit travel demand harder than analysts currently factor in.
Find out about the key risks to this MakeMyTrip narrative.
Another View on MakeMyTrip’s Valuation
The fair value narrative frames MakeMyTrip as 13.9% undervalued, yet the price tag tells a different story. The stock trades on a P/S of 5.4x, compared with a fair ratio of 3.2x, a peer average of 2.7x and a US Hospitality average of 1.8x. That is a sizeable premium. Is this market confidence in future growth or a valuation risk if expectations slip?
For a closer look at how these pricing gaps stack up against fundamentals over time, See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
After weighing both the upbeat and cautious signals around MakeMyTrip, it can be useful to move quickly and test the story against your own risk and reward framework. To see how the current positives and concerns line up in one place, review the 2 key rewards and 3 important warning signs
Looking for more investment ideas beyond MakeMyTrip?
If MakeMyTrip has sharpened your focus, do not stop here. Use the Simply Wall St screener to explore additional ideas that might suit your next move.
- Target potential mispricings by scanning companies that combine quality with attractive valuations through the 51 high quality undervalued stocks.
- Build a steadier core in your portfolio by reviewing companies with consistent payouts using the 9 dividend fortresses.
- Prioritise resilience by considering companies with stronger balance sheets and fundamentals via the solid balance sheet and fundamentals stocks screener (48 results).
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com