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RELIANCE POWER
PE (Price/Earnings) Ratio

The Current P/E Ratio of RELIANCE POWER is -6.96.

Share Price ₹27.5Apr 25,2024
Market Cap ₹11,050.8 Cr
Earnings-TTM₹-1,588.9 CrTTM-Consolidated Results
Price/Earnings-6.96xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of RELIANCE POWER

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 RELIANCE POWER is calculated as :

Current Market Cap [ ₹11,050.8 Cr] as on Apr 25,2024

(/) Earnings [ ₹-1,588.9 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ -6.96x ]

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

Thus, for RELIANCE POWER , the investors are currently willing to pay -6.96 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 RELIANCE POWER !

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 RELIANCE POWER over the last five years.

Historical PE (Price/Earnings) ratio chart of RELIANCE POWER


PE Ratio Performance Analysis for RELIANCE POWER

- RELIANCE POWER 's latest p/e ratio is -6.96x.

- RELIANCE POWER 's p/e ratio for fiscal years ending Mar2023 to Mar2019 averaged 1.35x.

- RELIANCE POWER 's operated at median p/e ratio of 0x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, RELIANCE POWER 's p/e ratio peaked in Mar2021 at 6.75x.

- RELIANCE POWER 's p/e ratio hit its five-year low in Mar2023 of 0x.


How does RELIANCE POWER '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
RELIANCE POWER -1,588.89-6.9611,050.8
NTPC LTD16,487.1021.07347,432.0
ADANI GREEN ENERGY LTD1,198.00239.73287,201.0
POWER GRID CORPORATION OF INDIA LTD16,282.8016.74272,601.0
ADANI POWER LTD23,334.009.79228,485.0
TATA POWER COMPANY LTD3,132.9944.01137,879.0
ADANI ENERGY SOLUTIONS LTD1,251.9893.57117,149.0
NHPC LTD3,737.5224.4691,429.9
JSW ENERGY LTD1,657.7863.77105,714.0
TORRENT POWER LTD1,932.8937.4772,426.5
SJVN LTD990.5252.7552,246.6

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

Top 10 Industry PeersPE Ratio
Min industry PE -6.96x
Max industry PE 239.73x
Median industry PE 37.47x
Average industry PE 54.22x



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