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POWER FINANCE CORPORATION
PE (Price/Earnings) Ratio

The Current P/E Ratio of POWER FINANCE CORPORATION is 5.23.

Share Price ₹396.7Apr 16,2024
Market Cap ₹130,898.5 Cr
Earnings-TTM₹25,033.4 CrTTM-Consolidated Results
Price/Earnings5.23xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of POWER FINANCE CORPORATION

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 POWER FINANCE CORPORATION is calculated as :

Current Market Cap [ ₹130,898.5 Cr] as on Apr 16,2024

(/) Earnings [ ₹25,033.4 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 5.23x ]

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

Thus, for POWER FINANCE CORPORATION , the investors are currently willing to pay 5.23 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 POWER FINANCE CORPORATION !

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 POWER FINANCE CORPORATION over the last five years.

Historical PE (Price/Earnings) ratio chart of POWER FINANCE CORPORATION


PE Ratio Performance Analysis for POWER FINANCE CORPORATION

- POWER FINANCE CORPORATION 's latest p/e ratio is 5.23x.

- POWER FINANCE CORPORATION 's p/e ratio for fiscal years ending Mar2023 to Mar2019 averaged 2.78x.

- POWER FINANCE CORPORATION 's operated at median p/e ratio of 2.55x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, POWER FINANCE CORPORATION 's p/e ratio peaked in Mar2020 at 3.42x.

- POWER FINANCE CORPORATION 's p/e ratio hit its five-year low in Mar2022 of 2.12x.


How does POWER FINANCE CORPORATION 's P/E Ratio benchmark against top 10 peers in Finance Term Lending Industry?

Peer Comparison (Finance Term Lending Industry)Earnings-TTM (Cr)PE RatioMarket Cap
POWER FINANCE CORPORATION 25,033.405.23130,898.5
INDIAN RAILWAY FINANCE CORPORATION LTD6,038.3830.67185,181.0
REC LTD13,131.708.61113,057.0
IFCI LTD-158.46-66.8010,585.8
UJJIVAN FINANCIAL SERVICES LTD1,120.415.706,385.2
MAS FINANCIAL SERVICES LTD240.7319.634,725.3
SATIN CREDITCARE NETWORK LTD406.326.502,643.0
TOURISM FINANCE CORPORATION OF INDIA LTD95.6016.511,578.8
GUJARAT STATE FINANCIAL CORPORATION LTD-120.30-1.95234.7

Finance Term Lending Industry Benchmark (Top 10) PE Analysis vs POWER FINANCE CORPORATION 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE -66.80x
Max industry PE 30.67x
Median industry PE 6.50x
Average industry PE 2.68x



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