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RAMKRISHNA FORGINGS
PE (Price/Earnings) Ratio

The Current P/E Ratio of RAMKRISHNA FORGINGS is 42.92.

Share Price ₹751.1Apr 30,2024
Market Cap ₹13,586.5 Cr
Earnings-TTM₹316.5 CrTTM-Consolidated Results
Price/Earnings42.92xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of RAMKRISHNA FORGINGS

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 RAMKRISHNA FORGINGS is calculated as :

Current Market Cap [ ₹13,586.5 Cr] as on Apr 30,2024

(/) Earnings [ ₹316.5 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 42.92x ]

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

Thus, for RAMKRISHNA FORGINGS , the investors are currently willing to pay 42.92 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 RAMKRISHNA FORGINGS !

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 RAMKRISHNA FORGINGS over the last five years.

Historical PE (Price/Earnings) ratio chart of RAMKRISHNA FORGINGS


PE Ratio Performance Analysis for RAMKRISHNA FORGINGS

- RAMKRISHNA FORGINGS 's latest p/e ratio is 42.92x.

- RAMKRISHNA FORGINGS 's p/e ratio for fiscal years ending Mar2023 to Mar2019 averaged 12.08x.

- RAMKRISHNA FORGINGS 's operated at median p/e ratio of 12.72x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, RAMKRISHNA FORGINGS 's p/e ratio peaked in Mar2023 at 18.45x.

- RAMKRISHNA FORGINGS 's p/e ratio hit its five-year low in Mar2019 of 2.84x.


How does RAMKRISHNA FORGINGS 's P/E Ratio benchmark against top 10 peers in Forgings Industry?

Peer Comparison (Forgings Industry)Earnings-TTM (Cr)PE RatioMarket Cap
RAMKRISHNA FORGINGS 316.5442.9213,586.5
BHARAT FORGE LTD806.5373.5859,346.2
CIE AUTOMOTIVE INDIA LTD562.3432.8318,459.8
MM FORGINGS LTD127.9220.882,671.5
LGB FORGE LTD-8.31-29.27243.2
HILTON METAL FORGING LTD8.6327.55237.6
KALYANI FORGE LTD4.6134.16157.4
SAMRAT FORGINGS LTD3.4055.70189.5
TIRUPATI FORGE LTD6.8626.92184.7
GANGA FORGING LTD1.9455.30107.3

Forgings Industry Benchmark (Top 10) PE Analysis vs RAMKRISHNA FORGINGS 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE -29.27x
Max industry PE 73.58x
Median industry PE 34.16x
Average industry PE 34.06x



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