ITC
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The Current P/B Ratio of ITC is 7.83.
| Share Price | ₹429.2 | Apr 23,2024 |
| Market Cap | ₹535,843.3 Cr | |
| Book Value | ₹68,413.8 Cr | Mar2023 - Consolidated Results |
| Price/Book | 7.83x | Calculated as MarketCap/Book Value |
|---|---|---|
| Explore Stock Analytics | ||
Definition & Calculation of PB (Price/Book ) ratio of ITC
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
Current Market Cap [ ₹535,843.3 Cr] as on Apr 23,2024
(/) Book Value [ ₹68,413.8 Cr] based on Mar2023 - Consolidated Results
(=) P/B Ratio [ 7.83x ]
P/B Ratio indicates 'the multiple of book value' investors are willing to pay to own one share of the company.
Thus, for ITC , the investors are currently willing to pay '7.83 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 ITC !
The chart below summarizes the trend in P/B Ratio of ITC over the last five years.
Thus, for ITC , the investors are currently willing to pay '7.83 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 ITC !
The chart below summarizes the trend in P/B Ratio of ITC over the last five years.
Historical PB (Price/Book ) ratio chart of ITC
PB Ratio Performance Analysis for ITC
- ITC 's latest p/b ratio is 7.83x.
- ITC 's p/b ratio for fiscal years ending Mar2023 to Mar2019 averaged 5.26x.
- ITC 's operated at median p/b ratio of 5.06x from fiscal years ending March 2018 to 2022.
- Looking back at the last 5 fiscal years, ITC 's p/b ratio peaked in Mar2023 at 6.97x.
- ITC 's p/b ratio hit its five-year low in Mar2020 of 3.34x.
- ITC 's p/b ratio for fiscal years ending Mar2023 to Mar2019 averaged 5.26x.
- ITC 's operated at median p/b ratio of 5.06x from fiscal years ending March 2018 to 2022.
- Looking back at the last 5 fiscal years, ITC 's p/b ratio peaked in Mar2023 at 6.97x.
- ITC 's p/b ratio hit its five-year low in Mar2020 of 3.34x.
How does ITC 's P/B Ratio benchmark against top 10 peers in Cigarettes/Tobacco Industry?
| Peer Comparison (Cigarettes/Tobacco Industry) | Book Value | PB Ratio | Market Cap |
|---|---|---|---|
| ITC | 68,413.80 | 7.83 | 535,843.3 |
| GODFREY PHILLIPS INDIA LTD | 3,547.93 | 4.57 | 16,230.7 |
| VST INDUSTRIES LTD | 1,177.27 | 5.20 | 6,124.9 |
| THE INDIAN WOOD PRODUCTS COMPANY LTD | 352.78 | 0.58 | 205.1 |
| NTC INDUSTRIES LTD | 88.84 | 1.52 | 135.0 |
Cigarettes/Tobacco Industry Benchmark (Top 10) PB Analysis vs ITC 's P/B Ratio
| Top 10 Industry Peers | PB Ratio |
|---|---|
| Min industry PB | 0.58x |
| Max industry PB | 7.83x |
| Median industry PB | 4.57x |
| Average industry PB | 3.94x |
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