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ITC
PB (Price/Book ) Ratio

The Current P/B Ratio of ITC is 8.08.

Share Price ₹478.0Nov 07,2024
Market Cap ₹597,963.7 Cr
Book Value₹73,999.4 CrMar2024 - Consolidated Results
Price/Book 8.08xCalculated as MarketCap/Book Value
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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

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

Current Market Cap [ ₹597,963.7 Cr] as on Nov 07,2024

(/) Book Value [ ₹73,999.4 Cr] based on Mar2024 - Consolidated Results

(=) P/B Ratio [ 8.08x ]

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 '8.08 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 8.08x.

- ITC 's p/b ratio for fiscal years ending Mar2024 to Mar2020 averaged 5.44x.

- 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 Mar2024 at 7.23x.

- 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 ValuePB RatioMarket Cap
ITC 73,999.408.08597,963.7
GODFREY PHILLIPS INDIA LTD4,227.578.5236,027.4
VST INDUSTRIES LTD1,249.114.595,732.8
THE INDIAN WOOD PRODUCTS COMPANY LTD355.260.58206.5
NTC INDUSTRIES LTD102.613.10317.7

Cigarettes/Tobacco Industry Benchmark (Top 10) PB Analysis vs ITC 's P/B Ratio

Top 10 Industry PeersPB Ratio
Min industry PB 0.58x
Max industry PB 8.52x
Median industry PB 4.59x
Average industry PB 4.97x



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