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AAREY DRUGS & PHARMACEUTICALS
PE (Price/Earnings) Ratio

The Current P/E Ratio of AAREY DRUGS & PHARMACEUTICALS is 20.35.

Share Price ₹49.4Feb 07,2025
Market Cap ₹140.2 Cr
Earnings-TTM₹6.9 CrTTM-Standalone Results
Price/Earnings20.35xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of AAREY DRUGS & PHARMACEUTICALS

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

P/E = Market Capitalization / Net Income

or, using per-share numbers:

P/E = Stock Price / Earnings Per Share (EPS)

Applying the above formula, P/E ratio of AAREY DRUGS & PHARMACEUTICALS is calculated as :

Current Market Cap [ ₹140.2 Cr] as on Feb 07,2025

(/) Earnings [ ₹6.9 Cr] based on TTM-Standalone Results

(=) P/E Ratio [ 20.35x ]

P/E Ratio indicates the multiple of earnings investors are willing to pay to own one share of the company.

Thus, for AAREY DRUGS & PHARMACEUTICALS , the investors are currently willing to pay 20.35 times earnings to own 1 share of the company.

PE Multiples are the most widely used valuation multiple in practice.

Since P/E ratio uses Net Income in the calculation, P/E multiples are not always reliable for valuing companies with negative earnings.

In such cases, you may consider using Price to Book ratio or Price to Sales ratio of AAREY DRUGS & PHARMACEUTICALS !

P/E ratios, also, would not adjust for differences in the capital structure between companies.

The chart below summarizes the trend in P/E Ratio of AAREY DRUGS & PHARMACEUTICALS over the last five years.

Historical PE (Price/Earnings) ratio chart of AAREY DRUGS & PHARMACEUTICALS


PE Ratio Performance Analysis for AAREY DRUGS & PHARMACEUTICALS

- AAREY DRUGS & PHARMACEUTICALS 's latest p/e ratio is 20.35x.

- AAREY DRUGS & PHARMACEUTICALS 's p/e ratio for fiscal years ending Mar2024 to Mar2020 averaged 14.48x.

- AAREY DRUGS & PHARMACEUTICALS 's operated at median p/e ratio of 15.93x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, AAREY DRUGS & PHARMACEUTICALS 's p/e ratio peaked in Mar2024 at 26.76x.

- AAREY DRUGS & PHARMACEUTICALS 's p/e ratio hit its five-year low in Mar2020 of 5.37x.


How does AAREY DRUGS & PHARMACEUTICALS 's P/E Ratio benchmark against top 10 peers in Pharmaceuticals & Drugs Industry?

Peer Comparison (Pharmaceuticals & Drugs Industry)Earnings-TTM (Cr)PE RatioMarket Cap
AAREY DRUGS & PHARMACEUTICALS 6.8920.35140.2
SUN PHARMACEUTICAL INDUSTRIES LTD11,486.0036.55419,764.0
CIPLA LTD5,000.4323.78118,905.0
DR REDDYS LABORATORIES LTD5,428.6019.07103,523.0
ZYDUS LIFESCIENCES LTD4,591.8021.78100,015.0
DIVIS LABORATORIES LTD2,067.0078.86163,010.0
MANKIND PHARMA LTD2,050.7350.67103,904.0
TORRENT PHARMACEUTICALS LTD1,862.0059.24110,313.0
LUPIN LTD2,651.9437.86100,405.0
AUROBINDO PHARMA LTD3,500.2519.7769,214.1
ABBOTT INDIA LTD1,334.4647.4563,315.3

Pharmaceuticals & Drugs Industry Benchmark (Top 10) PE Analysis vs AAREY DRUGS & PHARMACEUTICALS 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE 19.07x
Max industry PE 78.86x
Median industry PE 36.55x
Average industry PE 37.76x



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