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AARTI DRUGS
PE (Price/Earnings) Ratio

The Current P/E Ratio of AARTI DRUGS is 25.53.

Share Price ₹501.3Apr 24,2024
Market Cap ₹4,606.9 Cr
Earnings-TTM₹180.5 CrTTM-Consolidated Results
Price/Earnings25.53xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of AARTI DRUGS

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 AARTI DRUGS is calculated as :

Current Market Cap [ ₹4,606.9 Cr] as on Apr 24,2024

(/) Earnings [ ₹180.5 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 25.53x ]

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

Thus, for AARTI DRUGS , the investors are currently willing to pay 25.53 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 AARTI DRUGS !

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 AARTI DRUGS over the last five years.

Historical PE (Price/Earnings) ratio chart of AARTI DRUGS


PE Ratio Performance Analysis for AARTI DRUGS

- AARTI DRUGS 's latest p/e ratio is 25.53x.

- AARTI DRUGS 's p/e ratio for fiscal years ending Mar2023 to Mar2019 averaged 13.51x.

- AARTI DRUGS 's operated at median p/e ratio of 18.81x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, AARTI DRUGS 's p/e ratio peaked in Mar2021 at 23.09x.

- AARTI DRUGS 's p/e ratio hit its five-year low in Mar2020 of 2.08x.


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

Peer Comparison (Pharmaceuticals & Drugs Industry)Earnings-TTM (Cr)PE RatioMarket Cap
AARTI DRUGS 180.4625.534,606.9
SUN PHARMACEUTICAL INDUSTRIES LTD8,998.6339.63356,625.0
CIPLA LTD3,744.0330.16112,938.0
DR REDDYS LABORATORIES LTD5,209.4019.0699,276.9
ZYDUS LIFESCIENCES LTD2,954.2031.7993,921.9
DIVIS LABORATORIES LTD1,382.9773.26101,315.0
MANKIND PHARMA LTD1,743.3055.1596,143.2
TORRENT PHARMACEUTICALS LTD1,494.0060.8390,872.6
LUPIN LTD1,809.7439.7972,010.8
AUROBINDO PHARMA LTD2,777.8922.8663,492.3
ABBOTT INDIA LTD1,145.5847.2354,105.4

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

Top 10 Industry PeersPE Ratio
Min industry PE 19.06x
Max industry PE 73.26x
Median industry PE 39.63x
Average industry PE 40.48x



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