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AARTI PHARMALABS
PE (Price/Earnings) Ratio

The Current P/E Ratio of AARTI PHARMALABS is 26.04.

Share Price ₹655.7Nov 22,2024
Market Cap ₹5,940.2 Cr
Earnings-TTM₹228.1 CrTTM-Consolidated Results
Price/Earnings26.04xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of AARTI PHARMALABS

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 AARTI PHARMALABS is calculated as :

Current Market Cap [ ₹5,940.2 Cr] as on Nov 22,2024

(/) Earnings [ ₹228.1 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 26.04x ]

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

Thus, for AARTI PHARMALABS , the investors are currently willing to pay 26.04 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 AARTI PHARMALABS !

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 AARTI PHARMALABS over the last five years.

Historical PE (Price/Earnings) ratio chart of AARTI PHARMALABS


PE Ratio Performance Analysis for AARTI PHARMALABS

- AARTI PHARMALABS 's latest p/e ratio is 26.04x.

- AARTI PHARMALABS 's p/e ratio for fiscal years ending Mar2024 to Mar2021 averaged 7.76x.

- AARTI PHARMALABS 's operated at median p/e ratio of 12.86x from fiscal years ending March 2018 to 2022.

- Looking back at the last 4 fiscal years, AARTI PHARMALABS 's p/e ratio peaked in Mar2024 at 18.18x.

- AARTI PHARMALABS 's p/e ratio hit its five-year low in Mar2022 of 0x.


How does AARTI PHARMALABS 's P/E Ratio benchmark against top 10 peers in Pharmaceuticals & Drugs Industry?

Peer Comparison (Pharmaceuticals & Drugs Industry)Earnings-TTM (Cr)PE RatioMarket Cap
AARTI PHARMALABS 228.0926.045,940.2
SUN PHARMACEUTICAL INDUSTRIES LTD11,136.5038.73431,352.0
CIPLA LTD4,485.2226.76120,035.0
DR REDDYS LABORATORIES LTD5,406.8018.73101,286.0
ZYDUS LIFESCIENCES LTD4,298.9022.2195,461.4
DIVIS LABORATORIES LTD1,836.0086.75159,265.0
MANKIND PHARMA LTD2,124.8648.11102,231.0
TORRENT PHARMACEUTICALS LTD1,802.0059.55107,306.0
LUPIN LTD2,651.9435.6194,430.6
AUROBINDO PHARMA LTD3,598.8319.7571,069.8
ABBOTT INDIA LTD1,284.6645.8258,859.9

Pharmaceuticals & Drugs Industry Benchmark (Top 10) PE Analysis vs AARTI PHARMALABS 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE 18.73x
Max industry PE 86.75x
Median industry PE 35.61x
Average industry PE 38.91x



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