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TATA MOTORS
PE (Price/Earnings) Ratio

The Current P/E Ratio of TATA MOTORS is 8.59.

Share Price ₹773.7Nov 21,2024
Market Cap ₹284,799.0 Cr
Earnings-TTM₹33,165.2 CrTTM-Consolidated Results
Price/Earnings8.59xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of TATA MOTORS

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 TATA MOTORS is calculated as :

Current Market Cap [ ₹284,799.0 Cr] as on Nov 21,2024

(/) Earnings [ ₹33,165.2 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 8.59x ]

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

Thus, for TATA MOTORS , the investors are currently willing to pay 8.59 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 TATA MOTORS !

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 TATA MOTORS over the last five years.

Historical PE (Price/Earnings) ratio chart of TATA MOTORS


PE Ratio Performance Analysis for TATA MOTORS

- TATA MOTORS 's latest p/e ratio is 8.59x.

- TATA MOTORS 's p/e ratio for fiscal years ending Mar2024 to Mar2020 averaged 15.77x.

- TATA MOTORS 's operated at median p/e ratio of 0x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, TATA MOTORS 's p/e ratio peaked in Mar2023 at 66.72x.

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


How does TATA MOTORS 's P/E Ratio benchmark against top 10 peers in Automobiles-Trucks/Lcv Industry?

Peer Comparison (Automobiles-Trucks/Lcv Industry)Earnings-TTM (Cr)PE RatioMarket Cap
TATA MOTORS 33,165.208.59284,799.0
ASHOK LEYLAND LTD2,835.4022.6664,249.0
OLECTRA GREENTECH LTD100.08117.1811,726.9
FORCE MOTORS LTD492.1117.788,747.5
SML ISUZU LTD123.1918.782,313.5

Automobiles-Trucks/Lcv Industry Benchmark (Top 10) PE Analysis vs TATA MOTORS 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE 8.59x
Max industry PE 117.18x
Median industry PE 18.78x
Average industry PE 37.00x



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