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, primarily due to several key financial ratios that indicate its valuation is higher than the sector average. The company's Price-to-Earnings (PE) ratio stands at 17.07, significantly above the sector average of 12.19. A high PE ratio suggests that investors are willing to pay more for each dollar of earnings, which may indicate overvaluation if not supported by proportional earnings growth. Additionally, Carlyle's Price-to-Book (PB) ratio is 3.22, compared to the sector's 1.12. This ratio reflects how much investors are paying for each dollar of net assets, and a higher ratio can imply overvaluation if the growth prospects do not justify the premium. Carlyle's dividend yield is currently at 2.71%, which is lower than the sector average of 3.30%. A lower yield may deter income-focused investors, suggesting that Carlyle may not be providing enough return relative to its price compared to its peers. While Carlyle Group demonstrates strong performance in terms of net profit margin (18.81% vs. 18.27%), return on equity (18.20% vs. 8.04%), and return on assets (4.42% vs. 0.88%), these metrics do not offset the elevated valuation ratios. In summary, Carlyle Group's financial ratios suggest that it may be overvalued compared to its sector, raising questions about its current price level. 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.