ITC
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The Current P/E Ratio of ITC is 27.49.
| Share Price | ₹457.2 | Nov 21,2024 |
| Market Cap | ₹571,885.5 Cr | |
| Earnings-TTM | ₹20,803.4 Cr | TTM-Consolidated Results |
| Price/Earnings | 27.49x | Calculated as Market Cap/Earnings |
|---|---|---|
| Explore Stock Analytics | ||
Definition & Calculation of PE (Price/Earnings) ratio of ITC
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)
Current Market Cap [ ₹571,885.5 Cr] as on Nov 21,2024
(/) Earnings [ ₹20,803.4 Cr] based on TTM-Consolidated Results
(=) P/E Ratio [ 27.49x ]
P/E Ratio indicates the multiple of earnings investors are willing to pay to own one share of the company.
Thus, for ITC , the investors are currently willing to pay 27.49 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 ITC !
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 ITC over the last five years.
Thus, for ITC , the investors are currently willing to pay 27.49 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 ITC !
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 ITC over the last five years.
Historical PE (Price/Earnings) ratio chart of ITC
PE Ratio Performance Analysis for ITC
- ITC 's latest p/e ratio is 27.49x.
- ITC 's p/e ratio for fiscal years ending Mar2024 to Mar2020 averaged 21.10x.
- ITC 's operated at median p/e ratio of 20.43x from fiscal years ending March 2018 to 2022.
- Looking back at the last 5 fiscal years, ITC 's p/e ratio peaked in Mar2024 at 26.15x.
- ITC 's p/e ratio hit its five-year low in Mar2020 of 13.81x.
- ITC 's p/e ratio for fiscal years ending Mar2024 to Mar2020 averaged 21.10x.
- ITC 's operated at median p/e ratio of 20.43x from fiscal years ending March 2018 to 2022.
- Looking back at the last 5 fiscal years, ITC 's p/e ratio peaked in Mar2024 at 26.15x.
- ITC 's p/e ratio hit its five-year low in Mar2020 of 13.81x.
How does ITC 's P/E Ratio benchmark against top 10 peers in Cigarettes/Tobacco Industry?
| Peer Comparison (Cigarettes/Tobacco Industry) | Earnings-TTM (Cr) | PE Ratio | Market Cap |
|---|---|---|---|
| ITC | 20,803.40 | 27.49 | 571,885.5 |
| GODFREY PHILLIPS INDIA LTD | 714.39 | 42.57 | 30,408.9 |
| VST INDUSTRIES LTD | 243.06 | 21.93 | 5,330.2 |
| THE INDIAN WOOD PRODUCTS COMPANY LTD | 3.67 | 60.20 | 220.7 |
| NTC INDUSTRIES LTD | 2.13 | 135.04 | 287.1 |
Cigarettes/Tobacco Industry Benchmark (Top 10) PE Analysis vs ITC 's P/E Ratio
| Top 10 Industry Peers | PE Ratio |
|---|---|
| Min industry PE | 21.93x |
| Max industry PE | 135.04x |
| Median industry PE | 42.57x |
| Average industry PE | 57.45x |
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