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PB Ratio of Alkem Laboratories Ltd

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Alkem Laboratories Ltd

NSE: ALKEM

PB Ratio

5.4

Last updated on: Jan 22, 2025

Key Highlights

  • The latest PB Ratio of Alkem Laboratories Ltd is 5.4.
  • The PB ratio of the Alkem Laboratories Ltd is above 3 which indicates that the stock is overvalued but this is common in high-growing sectors.
  • The P/B Ratio of Alkem Laboratories Ltd changed from 4.5 on March 2020 to 5.7 on March 2024 . This represents a CAGR of 4.84% over 5 years.

Historical P/B Ratio of Alkem Laboratories Ltd

No data available

Company Fundamentals for Alkem Laboratories Ltd

Market Cap

61,593 Cr

EPS

181.9

P/E Ratio (TTM)

28.5

P/B Ratio (TTM)

5.4

Day’s High

5228.9

Day’s Low

5064.2

DTE

0.1

ROE

18.5

52 Week High

6440.0

52 Week Low

4409.9

ROCE

19.0

Market Price of Alkem Laboratories Ltd

1M

1Y

3Y

5Y

Monitoring Alkem Laboratories Ltd share price can help you stay informed about potential market shifts and opportunities. *All values are in Rupees.

Last Ten Days Market Price

Date
leftPrice (₹)right
22 Jan 20255151.5
21 Jan 20255175.65
20 Jan 20255240.15
17 Jan 20255251.2
16 Jan 20255182.5

SWOT Analysis Of Alkem Laboratories Ltd

Strength

3

che

Weakness

3

che

Opportunity

0

che

Threats

1

che

BlinkX Score for Alkem Laboratories Ltd

Asset Value vs Market Value of Alkem Laboratories Ltd

Market Value

0

Asset Value

0

* All values are in ₹ crores

Historical Market Cap of Alkem Laboratories Ltd

Market Cap

No data available

* All values are in crore

Historical Revenue, EBITDA and Net Profit of Alkem Laboratories Ltd

Revenue

EBITDA

Net Profit

No data available

* All values are in crore

PB Ratio of Alkem Laboratories Ltd Explained

``

61882

Market cap

961

Book Value per Share

5.4X

PB Ratio

The price-to-book (P/B) ratio compares a company's market capitalization to its book value by dividing its stock price per share by its book value per share.


How to calculate Price-to-Book (P/B) Ratio?

The Price-to-Book Ratio is used to determine the relationship between the total value of a company's outstanding shares and the net value of its assets. Before calculating the P/B ratio, investors need to overlook the market capitalization of a company.


Market capitalization = market value of a stock X no. of outstanding shares


Now, you need to know the net value of an organization's assets.

Book Value of Assets = Total Assets - Total Liabilities of a company


After knowing the value of the above ratios, here is the formula for the P/B Ratio:

P/B Ratio = Market Capitalization/ Book Value of Assets


or you can also use this formula

P/B ratio = Market Price Per Share/ Book Value of Asset Per Share

FAQs for PB Ratio of Alkem Laboratories Ltd

What is the PB ratio of Alkem Laboratories Ltd?

The current PB ratio of Alkem Laboratories Ltd is 5.38. The Price-to-Book value (P/B) ratio compares a company's current share price to its book value per share. It helps assess whether a stock is overvalued or undervalued relative to its net asset value.

What is the ideal PB ratio to buy Alkem Laboratories Ltd stocks?

An ideal PB ratio varies by industry; however, a PB ratio below 1.0 may indicate a good buying opportunity for Alkem Laboratories Ltd. Some investors and financial analysts may also consider any value under 3.0 as a good PB ratio.

How is the PB Ratio of Alkem Laboratories Ltd calculated?

The PB ratio of Alkem Laboratories Ltd is calculated by dividing the current share price by the book value per share. The book value per share is determined by dividing the company’s total net assets (assets minus liabilities) by the number of outstanding shares. This ratio helps evaluate how the market values the company's assets.

What does a high PB Ratio mean for Alkem Laboratories Ltd?

A high PB ratio suggests that Alkem Laboratories Ltd’s stock may be overvalued relative to its book value or that investors expect high growth.

What does a low PB Ratio indicate for Alkem Laboratories Ltd?

A low PB ratio of Alkem Laboratories Ltd may indicate that the stock is undervalued or it is facing financial difficulties.

Can Alkem Laboratories Ltd PB Ratio change over time?

Yes, the PB ratio of Alkem Laboratories Ltd can change over time due to fluctuations in the company’s stock price and changes in its book value.

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