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CEAT
PE (Price/Earnings) Ratio

The Current P/E Ratio of CEAT is 23.49.

Share Price ₹3,077.7Nov 29,2024
Market Cap ₹12,464.7 Cr
Earnings-TTM₹530.7 CrTTM-Consolidated Results
Price/Earnings23.49xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of CEAT

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 CEAT is calculated as :

Current Market Cap [ ₹12,464.7 Cr] as on Nov 29,2024

(/) Earnings [ ₹530.7 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 23.49x ]

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

Thus, for CEAT , the investors are currently willing to pay 23.49 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 CEAT !

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 CEAT over the last five years.

Historical PE (Price/Earnings) ratio chart of CEAT


PE Ratio Performance Analysis for CEAT

- CEAT 's latest p/e ratio is 23.49x.

- CEAT 's p/e ratio for fiscal years ending Mar2024 to Mar2020 averaged 25.94x.

- CEAT 's operated at median p/e ratio of 16.85x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, CEAT 's p/e ratio peaked in Mar2022 at 52.94x.

- CEAT 's p/e ratio hit its five-year low in Mar2020 of 13.77x.


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

Peer Comparison (Tyres & Allied Industry)Earnings-TTM (Cr)PE RatioMarket Cap
CEAT 530.7023.4912,464.7
MRF LTD1,947.5427.2653,088.2
BALKRISHNA INDUSTRIES LTD1,629.1032.9753,706.4
APOLLO TYRES LTD1,449.8322.3332,380.6
JK TYRE & INDUSTRIES LTD757.8813.8110,467.6
TVS SRICHAKRA LTD64.6444.512,877.1
GOODYEAR INDIA LTD58.4241.012,396.0

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

Top 10 Industry PeersPE Ratio
Min industry PE 13.81x
Max industry PE 44.51x
Median industry PE 27.26x
Average industry PE 29.34x



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