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Power Finance (BOM:532810) Shiller PE Ratio : 14.73 (As of May. 08, 2024)


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What is Power Finance Shiller PE Ratio?

As of today (2024-05-08), Power Finance's current share price is ₹421.80. Power Finance's E10 for the fiscal year that ended in Mar23 was ₹28.63. Power Finance's Shiller PE Ratio for today is 14.73.

The historical rank and industry rank for Power Finance's Shiller PE Ratio or its related term are showing as below:

BOM:532810' s Shiller PE Ratio Range Over the Past 10 Years
Min: 3.35   Med: 4.44   Max: 16.78
Current: 16.78

During the past 13 years, Power Finance's highest Shiller PE Ratio was 16.78. The lowest was 3.35. And the median was 4.44.

BOM:532810's Shiller PE Ratio is ranked worse than
54.46% of 303 companies
in the Credit Services industry
Industry Median: 14.97 vs BOM:532810: 16.78

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Power Finance's adjusted earnings per share data of for the fiscal year that ended in Mar23 was ₹48.152. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is ₹28.63 for the trailing ten years ended in Mar23.

Shiller PE for Stocks: The True Measure of Stock Valuation


Power Finance Shiller PE Ratio Historical Data

The historical data trend for Power Finance's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Power Finance Shiller PE Ratio Chart

Power Finance Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.25 4.29 4.55 3.81 4.24

Power Finance Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 4.24 - - -

Competitive Comparison of Power Finance's Shiller PE Ratio

For the Credit Services subindustry, Power Finance's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Power Finance's Shiller PE Ratio Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Power Finance's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Power Finance's Shiller PE Ratio falls into.



Power Finance Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Power Finance's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=421.80/28.63
=14.73

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Power Finance's E10 for the fiscal year that ended in Mar23 is calculated as:

For example, Power Finance's adjusted earnings per share data for the fiscal year that ended in Mar23 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Mar23 (Change)*Current CPI (Mar23)
=48.152/146.8646*146.8646
=48.152

Current CPI (Mar23) = 146.8646.

Power Finance Annual Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 8.276 91.425 13.295
201503 18.196 97.163 27.504
201603 9.372 102.518 13.426
201703 6.776 105.196 9.460
201803 20.272 109.786 27.118
201903 30.064 118.202 37.354
202003 21.584 124.705 25.419
202103 35.600 131.771 39.678
202203 42.464 138.822 44.924
202303 48.152 146.865 48.152

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Power Finance  (BOM:532810) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Power Finance Shiller PE Ratio Related Terms

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Power Finance (BOM:532810) Business Description

Traded in Other Exchanges
Address
Urjanidhi, 1, Barakhamba Lane, Connaught Place, New Delhi, IND, 110001
Power Finance Corp Ltd is a financial institution operating in India and dedicated to financing of the country's power sector and its various projects. The company serves state power utilities, central power sector utilities, power departments, private power sector utilities, joint sector power utilities, power equipment manufacturers, and municipal power utilities. The company's main products include rupee term loans, short-term loans, and a buyer line of credit. Interest income is the company's main source of revenue. The company's strategy emphasizes exploring other areas for sustainable growth, including funding renewable equipment manufacturers, nuclear power projects, and backward linkages to the power sector.

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