Adani Power Ltd PE Ratio

About Adani Power PE Ratio

Adani Power Limited is a well-known firm belonging to the power generation and distribution sector. It produces thermal power in India with a power generating capacity of roughly 12,450 megawatts (MW). It owns 12,410 MW of thermal power plants and a 40 MW solar power project. The company focuses on electricity generation and coal trade. The company has developed and operates over 9,240 MW of thermal generating capacity through its subsidiaries. Its performance has a positive impact on its financials. At present, the Adani Power PE ratio is 16.3. The PE ratio of Adani Power shows its robust performance over the years. 

Key Highlights of Adani Power PE Ratio

• As of August 2024, Adani Power Limited's P/E Ratio is 16.3.
• In March 2024, Adani power P/E ratio was 9.9, compared to 25.9 in March 2019. This translates as a reduced 4-year CAGR of 21.37% as of August 2024.
• In just five years, the Power Generation & Distribution Industry's P/E Ratio went from 12.6 to 15.0. 

Adani Power PE Ratio History

The PE ratio of Adani Power over the last 5 years is as follows. 

P/E Ratio Performance Analysis of Adani Green Energy

• As of the most recent financial reporting, Adani Power is trading at a price-to-earnings (P/E) ratio of 16.83. 
• Over the past five fiscal years, spanning from March 2020 to March 2024, Adani Power's average P/E ratio was 11.43. This provides a benchmark for the company's typical valuation over recent years.
• Examining a slightly different timeframe, from fiscal years ending March 2018 to 2022, the median P/E ratio for Adani Power was 9.88. The median offers insight into the company's typical valuation.
• During the last five fiscal years, Adani Power had the highest P/E ratio of 25.83 in March 2021. This suggests a period of particularly high investor optimism or strong earnings performance relative to the stock price.
• Conversely, Adani PE ratio dropped to its lowest point of 0 in March 2020. This indicates that the company experienced negative earnings or broke even during that fiscal year, as it's mathematically impossible to have a zero P/E with positive earnings.

The current P/E ratio of 16.83 is higher than both the five-year average and median, potentially indicating improved investor sentiment compared to recent historical values.