MakeMyTrip (MMYT) is back in focus after its latest quarterly and full year 2026 results, where lower profit and an earnings miss contrasted with higher gross bookings, rising finance costs, and ongoing geopolitical pressures on travel demand.

The stock’s recent slide, including a 30 day share price return of down 6.82% and a year to date share price return of down 47.8%, contrasts sharply with a 3 year total shareholder return of 62.12%. This suggests momentum has cooled even though longer term holders remain ahead.

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With shares down sharply this year yet still well ahead over five years, and with lower earnings sitting next to record gross bookings and substantial cash on hand, is MakeMyTrip now mispriced, or is the market already factoring in future growth?

Most Popular Narrative: 51.5% Undervalued

With MakeMyTrip last closing at $42.75 versus a narrative fair value of $88.10, the most followed storyline sees a wide gap between price and projected potential.

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.

If you want to see what is built into that fair value, focus on how the narrative blends forecast earnings growth, richer margins, and a higher future earnings multiple.

Result: Fair Value of $88.10 (UNDERVALUED)

However, this upbeat narrative still leans on uncertain assumptions, with high customer acquisition costs and rising competition both potential pressure points for future margins and growth expectations.

Another View: Earnings Multiple Sends a Different Signal

While the narrative fair value points to a large upside, the current P/E of 78.3x looks demanding next to the US Hospitality industry at 19.8x, peers at 28.2x, and an estimated fair ratio of 69.6x. That gap suggests more valuation risk than the story alone implies, so which signal do you weigh more heavily?

To see how this earnings-based view stacks up against the broader valuation breakdown, including that fair ratio, take a closer look at the See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With sentiment clearly split between the bull story and valuation concerns, it makes sense to act now and review both sides of the thesis for yourself. You can start with the 2 key rewards and 3 important warning signs.

Looking for more investment ideas?

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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.