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NTPC
PE (Price/Earnings) Ratio

The Current P/E Ratio of NTPC is 20.92.

Share Price ₹355.8Apr 26,2024
Market Cap ₹344,960.1 Cr
Earnings-TTM₹16,487.1 CrTTM-Consolidated Results
Price/Earnings20.92xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of NTPC

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 NTPC is calculated as :

Current Market Cap [ ₹344,960.1 Cr] as on Apr 26,2024

(/) Earnings [ ₹16,487.1 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 20.92x ]

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

Thus, for NTPC , the investors are currently willing to pay 20.92 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 NTPC !

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 NTPC over the last five years.

Historical PE (Price/Earnings) ratio chart of NTPC


PE Ratio Performance Analysis for NTPC

- NTPC 's latest p/e ratio is 20.92x.

- NTPC 's p/e ratio for fiscal years ending Mar2023 to Mar2019 averaged 8.38x.

- NTPC 's operated at median p/e ratio of 7.85x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, NTPC 's p/e ratio peaked in Mar2023 at 10.05x.

- NTPC 's p/e ratio hit its five-year low in Mar2021 of 7.05x.


How does NTPC 's P/E Ratio benchmark against top 10 peers in Power Generation/Distribution Industry?

Peer Comparison (Power Generation/Distribution Industry)Earnings-TTM (Cr)PE RatioMarket Cap
NTPC 16,487.1020.92344,960.1
ADANI GREEN ENERGY LTD1,198.00238.74286,013.0
POWER GRID CORPORATION OF INDIA LTD16,282.8016.68271,671.0
ADANI POWER LTD23,334.009.78228,215.0
TATA POWER COMPANY LTD3,132.9944.54139,556.0
ADANI ENERGY SOLUTIONS LTD1,251.9894.59118,421.0
NHPC LTD3,737.5224.8792,956.8
JSW ENERGY LTD1,657.7863.32104,971.0
TORRENT POWER LTD1,932.8937.0471,585.5
SJVN LTD990.5253.4052,895.0
NLC INDIA LTD2,590.1013.4334,776.9

Power Generation/Distribution Industry Benchmark (Top 10) PE Analysis vs NTPC 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE 9.78x
Max industry PE 238.74x
Median industry PE 37.04x
Average industry PE 56.12x



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