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CEAT
PB (Price/Book ) Ratio

The Current P/B Ratio of CEAT is 2.98.

Share Price ₹2,530.2Apr 24,2024
Market Cap ₹10,247.3 Cr
Book Value₹3,439.6 CrMar2023 - Consolidated Results
Price/Book 2.98xCalculated as MarketCap/Book Value
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Definition & Calculation of PB (Price/Book ) ratio of CEAT

Price-to-Book ratio, P/B Multiple, or P/B Ratio is an important valuation multiple that is defined as:

P/B = Market Capitalization / Book Value

or, using per-share numbers:

P/B = Stock Price / Book Value Per Share

Applying the above formula, P/B ratio of CEAT is calculated as :

Current Market Cap [ ₹10,247.3 Cr] as on Apr 24,2024

(/) Book Value [ ₹3,439.6 Cr] based on Mar2023 - Consolidated Results

(=) P/B Ratio [ 2.98x ]

P/B Ratio indicates 'the multiple of book value' investors are willing to pay to own one share of the company.

Thus, for CEAT , the investors are currently willing to pay '2.98 times book value' to own 1 share of the company.

PB Multiples are one of the most widely used valuation multiple in industry.

Since P/B ratio uses Book Value in the calculation, P/B multiples are not always reliable for valuing companies with negative book value.

In such cases, you may consider using Price to Earnings ratio or Price to Sales ratio of CEAT !

The chart below summarizes the trend in P/B Ratio of CEAT over the last five years.

Historical PB (Price/Book ) ratio chart of CEAT


PB Ratio Performance Analysis for CEAT

- CEAT 's latest p/b ratio is 2.98x.

- CEAT 's p/b ratio for fiscal years ending Mar2023 to Mar2019 averaged 1.50x.

- CEAT 's operated at median p/b ratio of 1.64x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, CEAT 's p/b ratio peaked in Mar2021 at 1.9x.

- CEAT 's p/b ratio hit its five-year low in Mar2020 of 1.09x.


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

Peer Comparison (Tyres & Allied Industry)Book ValuePB RatioMarket Cap
CEAT 3,439.642.9810,247.3
MRF LTD14,707.703.7154,505.5
BALKRISHNA INDUSTRIES LTD7,556.935.9745,127.0
APOLLO TYRES LTD12,877.802.4030,910.4
JK TYRE & INDUSTRIES LTD3,396.163.1210,603.6
TVS SRICHAKRA LTD1,034.183.063,161.9
GOODYEAR INDIA LTD605.814.462,704.6

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

Top 10 Industry PeersPB Ratio
Min industry PB 2.40x
Max industry PB 5.97x
Median industry PB 3.12x
Average industry PB 3.67x



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