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NTPC
PB (Price/Book ) Ratio

The Current P/B Ratio of NTPC is 2.35.

Share Price ₹355.8Apr 26,2024
Market Cap ₹344,960.1 Cr
Book Value₹147,023.0 CrMar2023 - Consolidated Results
Price/Book 2.35xCalculated as MarketCap/Book Value
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Definition & Calculation of PB (Price/Book ) ratio of NTPC

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 NTPC is calculated as :

Current Market Cap [ ₹344,960.1 Cr] as on Apr 26,2024

(/) Book Value [ ₹147,023.0 Cr] based on Mar2023 - Consolidated Results

(=) P/B Ratio [ 2.35x ]

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

Thus, for NTPC , the investors are currently willing to pay '2.35 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 NTPC !

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

Historical PB (Price/Book ) ratio chart of NTPC


PB Ratio Performance Analysis for NTPC

- NTPC 's latest p/b ratio is 2.35x.

- NTPC 's p/b ratio for fiscal years ending Mar2023 to Mar2019 averaged 0.97x.

- NTPC 's operated at median p/b ratio of 0.97x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, NTPC 's p/b ratio peaked in Mar2019 at 1.2x.

- NTPC 's p/b ratio hit its five-year low in Mar2020 of 0.7x.


How does NTPC 's P/B Ratio benchmark against top 10 peers in Power Generation/Distribution Industry?

Peer Comparison (Power Generation/Distribution Industry)Book ValuePB RatioMarket Cap
NTPC 147,023.002.35344,960.1
ADANI GREEN ENERGY LTD5,880.0048.64286,013.0
POWER GRID CORPORATION OF INDIA LTD83,014.503.27271,671.0
ADANI POWER LTD29,875.707.64228,215.0
TATA POWER COMPANY LTD28,787.404.85139,556.0
ADANI ENERGY SOLUTIONS LTD11,662.4010.15118,421.0
NHPC LTD36,899.302.5292,956.8
JSW ENERGY LTD18,563.705.65104,971.0
TORRENT POWER LTD11,010.006.5071,585.5
SJVN LTD13,859.503.8252,895.0
NLC INDIA LTD15,168.802.2934,776.9

Power Generation/Distribution Industry Benchmark (Top 10) PB Analysis vs NTPC 's P/B Ratio

Top 10 Industry PeersPB Ratio
Min industry PB 2.29x
Max industry PB 48.64x
Median industry PB 4.85x
Average industry PB 8.88x



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