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MRF
PE (Price/Earnings) Ratio

The Current P/E Ratio of MRF is 26.80.

Share Price ₹129,244.0Apr 19,2024
Market Cap ₹54,282.5 Cr
Earnings-TTM₹2,025.8 CrTTM-Consolidated Results
Price/Earnings26.80xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of MRF

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 MRF is calculated as :

Current Market Cap [ ₹54,282.5 Cr] as on Apr 19,2024

(/) Earnings [ ₹2,025.8 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 26.80x ]

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

Thus, for MRF , the investors are currently willing to pay 26.80 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 MRF !

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 MRF over the last five years.

Historical PE (Price/Earnings) ratio chart of MRF


PE Ratio Performance Analysis for MRF

- MRF 's latest p/e ratio is 26.80x.

- MRF 's p/e ratio for fiscal years ending Mar2023 to Mar2019 averaged 30.79x.

- MRF 's operated at median p/e ratio of 27.3x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, MRF 's p/e ratio peaked in Mar2023 at 46.34x.

- MRF 's p/e ratio hit its five-year low in Mar2020 of 17.36x.


How does MRF 's P/E Ratio benchmark against top 10 peers in Tyres & Allied Industry?

Peer Comparison (Tyres & Allied Industry)Earnings-TTM (Cr)PE RatioMarket Cap
MRF 2,025.7926.8054,282.5
BALKRISHNA INDUSTRIES LTD1,244.5436.3845,273.9
APOLLO TYRES LTD1,794.8516.7630,075.2
JK TYRE & INDUSTRIES LTD749.1014.0310,511.1
CEAT LTD646.3415.4810,004.1
TVS SRICHAKRA LTD106.3629.973,187.7
GOODYEAR INDIA LTD132.6720.222,683.0

Tyres & Allied Industry Benchmark (Top 10) PE Analysis vs MRF 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE 14.03x
Max industry PE 36.38x
Median industry PE 20.22x
Average industry PE 22.81x



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