CG is now overvalued and could go down -25%

Based on our analysis, Carlyle Group (The) has received an overvalued rating of 2 out of 5 stars from Cashu. A closer examination of its financial ratios reveals several areas where the company does not outperform its sector, contributing to this rating. The Price-to-Earnings (PE) ratio of Carlyle Group stands at 17.25, which is significantly higher than the sector average of 12.25. This indicates that investors are paying more for each dollar of earnings compared to similar companies, suggesting a potential overvaluation. Additionally, the Price-to-Book (PB) ratio is 2.85, compared to the sector's 1.10. A higher PB ratio often signals that a stock might be overpriced relative to its net assets, further supporting the overvaluation claim. Carlyle's Dividend Yield is at 2.86, slightly below the sector yield of 2.92. This lower yield means that investors may receive less income from dividends compared to what is typical in the sector, which can be a deterrent for income-focused investors. While the company shows strengths, such as a Net Profit Margin of 18.81 and a Return on Equity (ROE) of 16.08, these metrics do not mitigate the concerns raised by the higher valuation ratios. The Return on Assets (ROA) ratio is also robust at 4.42, but the valuation ratios remain a focal point for potential investors. 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.