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SHRIRAM FINANCE
PB (Price/Book ) Ratio

The Current P/B Ratio of SHRIRAM FINANCE is 2.05.

Share Price ₹2,360.2Mar 28,2024
Market Cap ₹88,696.3 Cr
Book Value₹43,313.0 CrMar2023 - Consolidated Results
Price/Book 2.05xCalculated as MarketCap/Book Value
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Definition & Calculation of PB (Price/Book ) ratio of SHRIRAM FINANCE

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 SHRIRAM FINANCE is calculated as :

Current Market Cap [ ₹88,696.3 Cr] as on Mar 28,2024

(/) Book Value [ ₹43,313.0 Cr] based on Mar2023 - Consolidated Results

(=) P/B Ratio [ 2.05x ]

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

Thus, for SHRIRAM FINANCE , the investors are currently willing to pay '2.05 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 SHRIRAM FINANCE !

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

Historical PB (Price/Book ) ratio chart of SHRIRAM FINANCE


PB Ratio Performance Analysis for SHRIRAM FINANCE

- SHRIRAM FINANCE 's latest p/b ratio is 2.05x.

- SHRIRAM FINANCE 's p/b ratio for fiscal years ending Mar2023 to Mar2019 averaged 1.31x.

- SHRIRAM FINANCE 's operated at median p/b ratio of 1.18x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, SHRIRAM FINANCE 's p/b ratio peaked in Mar2019 at 1.81x.

- SHRIRAM FINANCE 's p/b ratio hit its five-year low in Mar2020 of 0.83x.


How does SHRIRAM FINANCE 's P/B Ratio benchmark against top 10 peers in Finance - NBFC Industry?

Peer Comparison (Finance - NBFC Industry)Book ValuePB RatioMarket Cap
SHRIRAM FINANCE 43,313.002.0588,696.3
BAJAJ FINANCE LTD53,816.508.34448,880.0
BAJAJ HOLDINGS & INVESTMENT LTD44,182.802.0992,260.6
CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LTD14,262.706.8197,150.8
SBI CARDS AND PAYMENT SERVICES LTD9,789.936.6364,898.9
MUTHOOT FINANCE LTD21,663.702.7459,342.1
ADITYA BIRLA CAPITAL LTD20,076.602.2745,591.4
SUNDARAM FINANCE LTD9,906.754.6345,900.9
L&T FINANCE HOLDINGS LTD21,387.301.8439,362.6
POONAWALLA FINCORP LTD6,742.685.3536,055.3
MAHINDRA & MAHINDRA FINANCIAL SERVICES LTD18,519.901.8634,440.4

Finance - NBFC Industry Benchmark (Top 10) PB Analysis vs SHRIRAM FINANCE 's P/B Ratio

Top 10 Industry PeersPB Ratio
Min industry PB 1.84x
Max industry PB 8.34x
Median industry PB 2.74x
Average industry PB 4.06x



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