Itc PE Ratio

ITC Ltd P/E Ratio Overview 

ITC is a leading manufacturing company with four business segments at present: FMCG Cigarettes, FMCG Others, Paperboards, Paper and Packaging, and Agri Business. The ITC PE ratio reveals the extent to which investors are willing to pay for every rupee of the earnings of the company. The PE ratio of ITC assists in interpreting whether ITC stock is over- or underpriced relative to its historical rates and those of its industry counterparts. 

Calculation of P/E Ratio of ITC Ltd 

The PE ratio of ITC is calculated using the formula given below:  

P/E Ratio = Current Market Price per Share ÷ Earnings Per Share (EPS) 

Using ITC’s share-level data as of 16 January 2026, the calculation shows that the P/E ratio of ITC Ltd. is 11.96. 

This means investors are willing to pay ₹11.96 for every ₹1 of ITC’s earnings, based on its prevailing market price and EPS. 

How Does ITC Ltd P/E Ratio Benchmark Against Competitors? 

Comparing the PE Ratio ITC with its competitors and the industry average may help investors better understand how the market values the company relative to similar businesses. In case the PE of ITC is greater than the PE of the peer companies or sector average, then it means the stock is priced higher.  In most cases, because it has strong brand equity, the cash flows are stable, or the risk associated with it is less. On the other hand, when the ITC P/E ratio is below peers' and the industry average, it can be a signal that there is a valuation discount, or the industry is not growing quickly.  

P/E Ratio Performance Analysis for ITC Ltd 

The following is the P/E ratio performance analysis for ITS Ltd:  

• Industry Average Benchmark: Industry Average Benchmark: The comparison of ITC P/E to the industry average would provide information on how the market views the stability of the earnings of the company and its business model.  
• Premium or Discount Indicator: P/E ratio that is higher than the comparative group may be considered to indicate that the brand is strong and the earnings are predictable, though a low P/E ratio may be considered as poor long-run growth or under-pricing of the market. 
• Investment Decision Support: This comparison will help the investors to determine whether ITC is more valuable than other stocks in the same industry. 

Factors Affecting P/E Ratio of ITC Ltd 

Below are some factors that may affect the PE ratio of ITC ltd.  

• Growth Prospects of Earnings: In cases where earnings are projected to be stable or growing, the price that investors will pay each rupee of profit will vary.  
• Diversification of Business: ICT presence in the FMCG, cigarettes, hotels, paperboards, and agribusiness influences perceptions and valuation of risk. 
• Market Sentiment: The P/E ratio may fluctuate because of investor confidence, regulatory changes and trends in the sector.  
• Dividend Policy: High dividend payments tend to favour the valuation and can limit high growth in P/E.