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AARTI PHARMALABS
PE (Price/Earnings) Ratio

The Current P/E Ratio of AARTI PHARMALABS is 25.33.

Share Price ₹606.4May 16,2024
Market Cap ₹5,494.0 Cr
Earnings-TTM₹216.9 CrTTM-Consolidated Results
Price/Earnings25.33xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of AARTI PHARMALABS

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 PHARMALABS is calculated as :

Current Market Cap [ ₹5,494.0 Cr] as on May 16,2024

(/) Earnings [ ₹216.9 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 25.33x ]

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

Thus, for AARTI PHARMALABS , the investors are currently willing to pay 25.33 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 PHARMALABS !

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 PHARMALABS over the last five years.

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


PE Ratio Performance Analysis for AARTI PHARMALABS

- AARTI PHARMALABS 's latest p/e ratio is 25.33x.

- AARTI PHARMALABS 's p/e ratio for fiscal years ending Mar2023 to Mar2021 averaged 4.29x.

- AARTI PHARMALABS 's operated at median p/e ratio of 0x from fiscal years ending March 2018 to 2022.

- Looking back at the last 3 fiscal years, AARTI PHARMALABS 's p/e ratio peaked in Mar2023 at 12.86x.

- AARTI PHARMALABS 's p/e ratio hit its five-year low in Mar2022 of 0x.


How does AARTI PHARMALABS '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 PHARMALABS 216.9025.335,494.0
SUN PHARMACEUTICAL INDUSTRIES LTD8,998.6340.96368,598.0
CIPLA LTD4,155.3127.59114,654.0
DR REDDYS LABORATORIES LTD5,563.2017.5197,429.4
ZYDUS LIFESCIENCES LTD2,954.2034.36101,499.0
DIVIS LABORATORIES LTD1,382.9775.45104,348.0
MANKIND PHARMA LTD1,926.5543.5183,816.9
TORRENT PHARMACEUTICALS LTD1,494.0061.2591,505.5
LUPIN LTD1,935.5739.1375,736.5
AUROBINDO PHARMA LTD2,777.8924.4767,971.8
ABBOTT INDIA LTD1,201.2246.9656,407.1

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

Top 10 Industry PeersPE Ratio
Min industry PE 17.51x
Max industry PE 75.45x
Median industry PE 39.13x
Average industry PE 39.68x



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