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Rane (Madras)NSE:RML -3.07%60 EV-to-EBIT is 19.21 as of Aug. 05, 2026, which is 31% above its 10-year median of 14.69. GuruFocus rates NSE:RML with a GF Score™ of 60/100 and a GF Value™ of ₹674.02 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,077 Vehicles & Parts companies, Rane (Madras) ranks worse than 66.67% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Rane (Madras)'s Enterprise Value for the quarter that ended in Mar. 2026 was ₹24,147 Mil.
Rane (Madras)'s EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹2,051 Mil.
* 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.
Rane (Madras) EV-to-EBIT Related Terms
Rane (Madras) EV-to-EBIT Historical Data
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The historical data trend for Rane (Madras)'s EV-to-EBIT 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.
For the Auto Parts subindustry, Rane (Madras)'s EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.
Rane (Madras) EV-to-EBIT vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Rane (Madras)'s EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Rane (Madras)'s EV-to-EBIT falls into.
Rane (Madras)'s current Enterprise Value is ₹39,396 Mil.
Rane (Madras)'s EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹2,051 Mil.
* 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.
Rane (Madras) (NSE:RML) has a EV-to-EBIT of 19.21 as of Aug. 05, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Rane (Madras) and its competitors. This is 31% above median its historical median of 14.69. According to the industry distribution chart, Rane (Madras) ranks #718 out of 1077 companies in the Vehicles & Parts industry, placing it in the top 66.7%.
Is Rane (Madras)'s EV-to-EBIT too high?
Rane (Madras)'s current EV-to-EBIT of 19.21 is 31% above median its 10-year median of 14.69. The Vehicles & Parts industry median EV-to-EBIT is 13.18. Rane (Madras)'s value of 19.21 is 45.8% above this industry median. Based on the distribution chart, Rane (Madras) ranks #718 out of 1077 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Rane (Madras) has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rane (Madras)'s EV-to-EBIT compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Rane (Madras) ranks #718 out of 1077 companies for EV-to-EBIT. This places Rane (Madras) in the lower half of its industry. The industry median EV-to-EBIT is 13.18. Rane (Madras)'s value of 19.21 is 45.8% above this benchmark. While the company's 10-year median is 14.69 vs. the industry median of 13.18, Rane (Madras) has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Vehicles & Parts company?
The median EV-to-EBIT among Vehicles & Parts companies is 13.18, based on 1,077 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rane (Madras)'s current EV-to-EBIT of 19.21 is 45.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Rane (Madras) and its competitors. For the Vehicles & Parts industry, the median EV-to-EBIT is 13.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rane (Madras)'s current EV-to-EBIT is 19.21, which is 31% above median its own 10-year median of 14.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rane (Madras) stock overvalued right now?
Based on GuruFocus' analysis, Rane (Madras) (NSE:RML) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹674.02, compared to a current price of ₹1,173.60 — trading 74.1% above its estimated fair value. The current EV-to-EBIT is 19.21, which is 31% above median its 10-year median of 14.69 and 45.8% above the Vehicles & Parts industry median of 13.18. Rane (Madras)'s overall GF Score™ is 60/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Rane (Madras) (NSE:RML), the current EV-to-EBIT is 19.21 as of Aug. 05, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rane (Madras) (NSE:RML) Overvalued in 2026?
Based on GuruFocus' analysis, Rane (Madras) stock appears to be overvalued.
The current stock price of ₹1,173.60 is trading 74.1% above its estimated GF Value™ of ₹674.02.
GuruFocus considers Rane (Madras) to be Significantly Overvalued.
Key valuation signals for NSE:RML:
EV-to-EBIT: 19.21 (31% above median its 10-year median of 14.69)
GF Value™: ₹674.02 vs. price of ₹1,173.60 (74.1% above fair value)
Industry Position: 45.8% above the Vehicles & Parts median (#718 of 1077)
No single metric tells the full story. See the NSE:RML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rane (Madras) Ltd provides components for the transportation industry. The company is a manufacturer of steering and suspension linkages products, steering gear products and other articles of aluminum die casting products. It operates through two divisions: the Steering and Linkages division and the Light Metal Castings division. The company's steering and linkages division manufactures manual steering gears, hydrostatic steering systems, and steering and suspension linkage products. Its Light Metal Castings division manufactures low-porosity, high-quality aluminum die-castings such as steering housings and engine case covers. Geographically, the company derives key revenue within India.
60GF Score
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