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CEAT
PB (Price/Book ) Ratio

The Current P/B Ratio of CEAT is 2.98.

Share Price ₹2,974.5Nov 28,2024
Market Cap ₹12,046.5 Cr
Book Value₹4,042.6 CrMar2024 - Consolidated Results
Price/Book 2.98xCalculated as MarketCap/Book Value
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Definition & Calculation of PB (Price/Book ) ratio of CEAT

Price-to-Book ratio, P/B Multiple, or P/B Ratio is an important valuation multiple that is defined as:

P/B = Market Capitalization / Book Value

or, using per-share numbers:

P/B = Stock Price / Book Value Per Share

Applying the above formula, P/B ratio of CEAT is calculated as :

Current Market Cap [ ₹12,046.5 Cr] as on Nov 28,2024

(/) Book Value [ ₹4,042.6 Cr] based on Mar2024 - Consolidated Results

(=) P/B Ratio [ 2.98x ]

P/B Ratio indicates 'the multiple of book value' investors are willing to pay to own one share of the company.

Thus, for CEAT , the investors are currently willing to pay '2.98 times book value' to own 1 share of the company.

PB Multiples are one of the most widely used valuation multiple in industry.

Since P/B ratio uses Book Value in the calculation, P/B multiples are not always reliable for valuing companies with negative book value.

In such cases, you may consider using Price to Earnings ratio or Price to Sales ratio of CEAT !

The chart below summarizes the trend in P/B Ratio of CEAT over the last five years.

Historical PB (Price/Book ) ratio chart of CEAT


PB Ratio Performance Analysis for CEAT

- CEAT 's latest p/b ratio is 2.98x.

- CEAT 's p/b ratio for fiscal years ending Mar2024 to Mar2020 averaged 1.71x.

- CEAT 's operated at median p/b ratio of 1.71x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, CEAT 's p/b ratio peaked in Mar2024 at 2.68x.

- CEAT 's p/b ratio hit its five-year low in Mar2020 of 1.09x.


How does CEAT 's P/B Ratio benchmark against top 10 peers in Tyres & Allied Industry?

Peer Comparison (Tyres & Allied Industry)Book ValuePB RatioMarket Cap
CEAT 4,042.612.9812,046.5
MRF LTD16,703.003.1452,445.3
BALKRISHNA INDUSTRIES LTD8,853.825.9552,639.3
APOLLO TYRES LTD13,902.202.3332,409.2
JK TYRE & INDUSTRIES LTD4,486.712.3110,359.3
TVS SRICHAKRA LTD1,112.132.612,902.7
GOODYEAR INDIA LTD581.454.122,394.5

Tyres & Allied Industry Benchmark (Top 10) PB Analysis vs CEAT 's P/B Ratio

Top 10 Industry PeersPB Ratio
Min industry PB 2.31x
Max industry PB 5.95x
Median industry PB 2.98x
Average industry PB 3.35x



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