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AAREY DRUGS & PHARMACEUTICALS
PE (Price/Earnings) Ratio

The Current P/E Ratio of AAREY DRUGS & PHARMACEUTICALS is 36.06.

Share Price ₹48.5Apr 23,2024
Market Cap ₹136.3 Cr
Earnings-TTM₹3.8 CrTTM-Standalone Results
Price/Earnings36.06xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of AAREY DRUGS & PHARMACEUTICALS

Price-to-Earnings ratio, P/E Multiple, or P/E Ratio is an important valuation multiple that is defined as:

P/E = Market Capitalization / Net Income

or, using per-share numbers:

P/E = Stock Price / Earnings Per Share (EPS)

Applying the above formula, P/E ratio of AAREY DRUGS & PHARMACEUTICALS is calculated as :

Current Market Cap [ ₹136.3 Cr] as on Apr 23,2024

(/) Earnings [ ₹3.8 Cr] based on TTM-Standalone Results

(=) P/E Ratio [ 36.06x ]

P/E Ratio indicates the multiple of earnings investors are willing to pay to own one share of the company.

Thus, for AAREY DRUGS & PHARMACEUTICALS , the investors are currently willing to pay 36.06 times earnings to own 1 share of the company.

PE Multiples are the most widely used valuation multiple in practice.

Since P/E ratio uses Net Income in the calculation, P/E multiples are not always reliable for valuing companies with negative earnings.

In such cases, you may consider using Price to Book ratio or Price to Sales ratio of AAREY DRUGS & PHARMACEUTICALS !

P/E ratios, also, would not adjust for differences in the capital structure between companies.

The chart below summarizes the trend in P/E Ratio of AAREY DRUGS & PHARMACEUTICALS over the last five years.

Historical PE (Price/Earnings) ratio chart of AAREY DRUGS & PHARMACEUTICALS


PE Ratio Performance Analysis for AAREY DRUGS & PHARMACEUTICALS

- AAREY DRUGS & PHARMACEUTICALS 's latest p/e ratio is 36.06x.

- AAREY DRUGS & PHARMACEUTICALS 's p/e ratio for fiscal years ending Mar2023 to Mar2019 averaged 11.20x.

- AAREY DRUGS & PHARMACEUTICALS 's operated at median p/e ratio of 10.33x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, AAREY DRUGS & PHARMACEUTICALS 's p/e ratio peaked in Mar2022 at 16.03x.

- AAREY DRUGS & PHARMACEUTICALS 's p/e ratio hit its five-year low in Mar2020 of 5.37x.


How does AAREY DRUGS & PHARMACEUTICALS 's P/E Ratio benchmark against top 10 peers in Pharmaceuticals & Drugs Industry?

Peer Comparison (Pharmaceuticals & Drugs Industry)Earnings-TTM (Cr)PE RatioMarket Cap
AAREY DRUGS & PHARMACEUTICALS 3.7836.06136.3
SUN PHARMACEUTICAL INDUSTRIES LTD8,998.6339.56356,001.0
CIPLA LTD3,744.0329.06108,813.0
DR REDDYS LABORATORIES LTD5,209.4019.0799,325.3
ZYDUS LIFESCIENCES LTD2,954.2032.6896,553.2
DIVIS LABORATORIES LTD1,382.9772.36100,075.0
MANKIND PHARMA LTD1,743.3055.0195,896.9
TORRENT PHARMACEUTICALS LTD1,494.0059.7289,224.4
LUPIN LTD1,809.7439.8072,033.6
AUROBINDO PHARMA LTD2,777.8923.0564,043.1
ABBOTT INDIA LTD1,145.5847.7554,704.8

Pharmaceuticals & Drugs Industry Benchmark (Top 10) PE Analysis vs AAREY DRUGS & PHARMACEUTICALS 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE 19.07x
Max industry PE 72.36x
Median industry PE 39.56x
Average industry PE 41.29x



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