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CUMMINS INDIA
PB (Price/Book ) Ratio

The Current P/B Ratio of CUMMINS INDIA is 14.48.

Share Price ₹3,008.0Mar 28,2024
Market Cap ₹83,381.8 Cr
Book Value₹5,758.2 CrMar2023 - Consolidated Results
Price/Book 14.48xCalculated as MarketCap/Book Value
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Definition & Calculation of PB (Price/Book ) ratio of CUMMINS INDIA

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 CUMMINS INDIA is calculated as :

Current Market Cap [ ₹83,381.8 Cr] as on Mar 28,2024

(/) Book Value [ ₹5,758.2 Cr] based on Mar2023 - Consolidated Results

(=) P/B Ratio [ 14.48x ]

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

Thus, for CUMMINS INDIA , the investors are currently willing to pay '14.48 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 CUMMINS INDIA !

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

Historical PB (Price/Book ) ratio chart of CUMMINS INDIA


PB Ratio Performance Analysis for CUMMINS INDIA

- CUMMINS INDIA 's latest p/b ratio is 14.48x.

- CUMMINS INDIA 's p/b ratio for fiscal years ending Mar2023 to Mar2019 averaged 5.25x.

- CUMMINS INDIA 's operated at median p/b ratio of 5.48x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, CUMMINS INDIA 's p/b ratio peaked in Mar2023 at 7.84x.

- CUMMINS INDIA 's p/b ratio hit its five-year low in Mar2020 of 2.05x.


How does CUMMINS INDIA 's P/B Ratio benchmark against top 10 peers in Diesel Engines Industry?

Peer Comparison (Diesel Engines Industry)Book ValuePB RatioMarket Cap
CUMMINS INDIA 5,758.2414.4883,381.8
GREAVES COTTON LTD1,572.771.872,933.6
SWARAJ ENGINES LTD342.088.142,783.1

Diesel Engines Industry Benchmark (Top 10) PB Analysis vs CUMMINS INDIA 's P/B Ratio

Top 10 Industry PeersPB Ratio
Min industry PB 1.87x
Max industry PB 14.48x
Median industry PB 8.14x
Average industry PB 8.16x



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