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NTPC
PB (Price/Book ) Ratio

The Current P/B Ratio of NTPC is 1.93.

Share Price ₹319.6Feb 05,2025
Market Cap ₹309,858.0 Cr
Book Value₹160,709.0 CrMar2024 - Consolidated Results
Price/Book 1.93xCalculated as MarketCap/Book Value
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Definition & Calculation of PB (Price/Book ) ratio of NTPC

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 NTPC is calculated as :

Current Market Cap [ ₹309,858.0 Cr] as on Feb 05,2025

(/) Book Value [ ₹160,709.0 Cr] based on Mar2024 - Consolidated Results

(=) P/B Ratio [ 1.93x ]

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

Thus, for NTPC , the investors are currently willing to pay '1.93 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 NTPC !

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

Historical PB (Price/Book ) ratio chart of NTPC


PB Ratio Performance Analysis for NTPC

- NTPC 's latest p/b ratio is 1.93x.

- NTPC 's p/b ratio for fiscal years ending Mar2024 to Mar2020 averaged 1.14x.

- NTPC 's operated at median p/b ratio of 0.97x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, NTPC 's p/b ratio peaked in Mar2024 at 2.03x.

- NTPC 's p/b ratio hit its five-year low in Mar2020 of 0.7x.


How does NTPC 's P/B Ratio benchmark against top 10 peers in Power Generation/Distribution Industry?

Peer Comparison (Power Generation/Distribution Industry)Book ValuePB RatioMarket Cap
NTPC 160,709.001.93309,858.0
ADANI GREEN ENERGY LTD6,072.0026.56161,255.0
POWER GRID CORPORATION OF INDIA LTD87,145.103.04265,207.0
ADANI POWER LTD43,145.004.52194,910.0
TATA POWER COMPANY LTD32,347.003.62117,013.0
ADANI ENERGY SOLUTIONS LTD12,641.507.3793,159.5
NHPC LTD38,702.402.0679,908.2
JSW ENERGY LTD20,742.104.1686,261.1
TORRENT POWER LTD12,061.705.5767,150.2
SJVN LTD14,070.802.6937,836.1
NLC INDIA LTD16,531.101.8831,012.1

Power Generation/Distribution Industry Benchmark (Top 10) PB Analysis vs NTPC 's P/B Ratio

Top 10 Industry PeersPB Ratio
Min industry PB 1.88x
Max industry PB 26.56x
Median industry PB 3.62x
Average industry PB 5.76x



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