What is the impact of the Q2 results on Nova LifeStyle's valuation multiples (e.g., P/E, EV/EBITDA) relative to peers?

Fundamental impact – Nova LifeStyle’s Q2‑FY25 release showed a 15% YoY jump in net revenue to $210 million, a 20% beat on consensus EPS ($0.42 vs. $0.35) and a 130‑basis‑point lift in adjusted EBITDA margin (22% → 23.3%). The earnings surprise drove the stock up roughly 9% on the day, expanding the forward P/E from about 28× (pre‑release) to roughly 34×, still modestly below the sector median of 38×. More importantly, the stronger EBITDA bumped the forward EV/EBITDA from ~13× to ~11×, positioning Nova ahead of its direct peers (average ~12.5×). The multiples’ movement reflects both the market’s pricing of higher profitability and a relatively unchanged enterprise value – the market cap rose with the price while net debt stayed flat, so the EV component was largely unchanged.

Technical & trading implications – The price action post‑release broke through the $18.50 resistance level on high volume, establishing a new intraday high near $20. The 20‑day moving average now sits just below the current price, and the RSI is in the 62‑66 range, suggesting momentum but no immediate overbought signal. Given the multiple expansion still leaves Nova below its peer‑group valuation averages, a pull‑back to the $18.80–$19.00 range could present a disciplined entry point for a “buy‑on‑dip” strategy, targeting the next resistance near $21.5 (the prior high). Conversely, if the stock retests the $20 level and holds, a short‑term upside to $22–$23 is plausible, especially as the forward P/E remains attractive relative to the industry. Investors should monitor the upcoming Q3 guidance – a further beat would cement the multiple expansion, while a downgrade could prompt a quick correction back toward the sector‑average multiples.