CG is now overvalued and could go down -25%

Based on our analysis, Carlyle Group currently holds an overvalued rating of 2 out of 5 stars from Cashu. The company's financial ratios indicate a premium valuation compared to its sector peers, particularly when considering the price-to-earnings (PE) ratio and the price-to-book (PB) ratio. Carlyle's PE ratio stands at 18.55, significantly higher than the sector average of 12.68. A higher PE ratio suggests that investors are willing to pay more for each dollar of earnings, which may indicate overvaluation if earnings growth does not keep pace. Additionally, Carlyle's PB ratio is 2.85 compared to the sector's 1.10. The PB ratio reflects how much investors are willing to pay for each dollar of net assets. A higher ratio can suggest that the stock is overpriced relative to its book value, raising concerns about future performance. While Carlyle Group demonstrates strong performance in terms of net profit margin (18.81 vs. 18.54) and return on equity (ROE) at 16.08 compared to the sector's 7.80, these strengths do not offset the higher valuations indicated by their PE and PB ratios. Furthermore, the company's dividend yield of 2.66 is slightly below the sector average of 2.86, suggesting less attractive returns for income-focused investors. In summary, the elevated valuation metrics relative to the sector warrant caution, as they may not reflect future growth potential adequately. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.