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ALKEM LABORATORIES
PE (Price/Earnings) Ratio

The Current P/E Ratio of ALKEM LABORATORIES is 31.22.

Share Price ₹5,640.1Dec 03,2024
Market Cap ₹67,455.0 Cr
Earnings-TTM₹2,161.0 CrTTM-Consolidated Results
Price/Earnings31.22xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of ALKEM LABORATORIES

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 ALKEM LABORATORIES is calculated as :

Current Market Cap [ ₹67,455.0 Cr] as on Dec 03,2024

(/) Earnings [ ₹2,161.0 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 31.22x ]

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

Thus, for ALKEM LABORATORIES , the investors are currently willing to pay 31.22 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 ALKEM LABORATORIES !

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 ALKEM LABORATORIES over the last five years.

Historical PE (Price/Earnings) ratio chart of ALKEM LABORATORIES


PE Ratio Performance Analysis for ALKEM LABORATORIES

- ALKEM LABORATORIES 's latest p/e ratio is 31.22x.

- ALKEM LABORATORIES 's p/e ratio for fiscal years ending Mar2024 to Mar2020 averaged 29.21x.

- ALKEM LABORATORIES 's operated at median p/e ratio of 26.28x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, ALKEM LABORATORIES 's p/e ratio peaked in Mar2023 at 41.27x.

- ALKEM LABORATORIES 's p/e ratio hit its five-year low in Mar2021 of 20.91x.


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

Peer Comparison (Pharmaceuticals & Drugs Industry)Earnings-TTM (Cr)PE RatioMarket Cap
ALKEM LABORATORIES 2,160.9631.2267,455.0
SUN PHARMACEUTICAL INDUSTRIES LTD11,136.5038.75431,544.0
CIPLA LTD4,485.2227.63123,920.0
DR REDDYS LABORATORIES LTD5,406.8018.91102,224.0
ZYDUS LIFESCIENCES LTD4,298.9022.9998,832.3
DIVIS LABORATORIES LTD1,836.0089.80164,865.0
MANKIND PHARMA LTD2,124.8648.25102,527.0
TORRENT PHARMACEUTICALS LTD1,802.0063.14113,772.0
LUPIN LTD2,651.9435.8194,953.0
AUROBINDO PHARMA LTD3,598.8320.4473,544.0
ABBOTT INDIA LTD1,284.6647.0560,440.8

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

Top 10 Industry PeersPE Ratio
Min industry PE 18.91x
Max industry PE 89.80x
Median industry PE 35.81x
Average industry PE 40.36x



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