ITC
|
The Current P/E Ratio of ITC is 28.10.
| Share Price | ₹467.4 | Nov 19,2024 |
| Market Cap | ₹584,645.5 Cr | |
| Earnings-TTM | ₹20,803.4 Cr | TTM-Consolidated Results |
| Price/Earnings | 28.10x | 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 [ ₹584,645.5 Cr] as on Nov 19,2024
(/) Earnings [ ₹20,803.4 Cr] based on TTM-Consolidated Results
(=) P/E Ratio [ 28.10x ]
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 28.10 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 28.10 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 28.10x.
- 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 | 28.10 | 584,645.5 |
| GODFREY PHILLIPS INDIA LTD | 714.39 | 43.61 | 31,157.1 |
| VST INDUSTRIES LTD | 243.06 | 22.24 | 5,405.8 |
| THE INDIAN WOOD PRODUCTS COMPANY LTD | 3.67 | 57.50 | 210.8 |
| NTC INDUSTRIES LTD | 2.13 | 137.63 | 292.6 |
Cigarettes/Tobacco Industry Benchmark (Top 10) PE Analysis vs ITC 's P/E Ratio
| Top 10 Industry Peers | PE Ratio |
|---|---|
| Min industry PE | 22.24x |
| Max industry PE | 137.63x |
| Median industry PE | 43.61x |
| Average industry PE | 57.82x |
You may also like the below Video Courses
