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KPIT TECHNOLOGIES
PE (Price/Earnings) Ratio

The Current P/E Ratio of KPIT TECHNOLOGIES is 69.04.

Share Price ₹1,369.4Apr 24,2024
Market Cap ₹37,535.3 Cr
Earnings-TTM₹543.7 CrTTM-Consolidated Results
Price/Earnings69.04xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of KPIT TECHNOLOGIES

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 KPIT TECHNOLOGIES is calculated as :

Current Market Cap [ ₹37,535.3 Cr] as on Apr 24,2024

(/) Earnings [ ₹543.7 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 69.04x ]

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

Thus, for KPIT TECHNOLOGIES , the investors are currently willing to pay 69.04 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 KPIT TECHNOLOGIES !

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 KPIT TECHNOLOGIES over the last five years.

Historical PE (Price/Earnings) ratio chart of KPIT TECHNOLOGIES


PE Ratio Performance Analysis for KPIT TECHNOLOGIES

- KPIT TECHNOLOGIES 's latest p/e ratio is 69.04x.

- KPIT TECHNOLOGIES 's p/e ratio for fiscal years ending Mar2023 to Mar2019 averaged 32.77x.

- KPIT TECHNOLOGIES 's operated at median p/e ratio of 32.59x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, KPIT TECHNOLOGIES 's p/e ratio peaked in Mar2023 at 65.64x.

- KPIT TECHNOLOGIES 's p/e ratio hit its five-year low in Mar2019 of 0x.


How does KPIT TECHNOLOGIES 's P/E Ratio benchmark against top 10 peers in IT - Software Industry?

Peer Comparison (IT - Software Industry)Earnings-TTM (Cr)PE RatioMarket Cap
KPIT TECHNOLOGIES 543.6769.0437,535.3
TATA CONSULTANCY SERVICES LTD46,099.0030.071,386,180.0
INFOSYS LTD26,248.0022.64594,342.0
HCL TECHNOLOGIES LTD15,696.0025.58401,527.0
WIPRO LTD11,135.4021.59240,467.0
LTIMINDTREE LTD4,584.6030.57140,161.0
TECH MAHINDRA LTD2,858.5040.53115,858.0
ORACLE FINANCIAL SERVICES SOFTWARE LTD2,138.5429.8363,787.4
PERSISTENT SYSTEMS LTD1,093.4948.8353,396.0
L&T TECHNOLOGY SERVICES LTD1,275.7043.3755,328.8
TATA ELXSI LTD792.2455.3043,812.1

IT - Software Industry Benchmark (Top 10) PE Analysis vs KPIT TECHNOLOGIES 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE 21.59x
Max industry PE 69.04x
Median industry PE 30.57x
Average industry PE 37.94x



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