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Alkem Laboratories (NSE:ALKEM) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Alkem Laboratories Forward PE Ratio Related Terms
Alkem Laboratories Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for Alkem Laboratories's Forward 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.
Alkem Laboratories Forward PE Ratio Chart
Alkem Laboratories Annual Data
Trend
2018-03
2024-03
2025-03
2026-03
Forward PE Ratio
23.92
29.07
23.98
28.00
Alkem Laboratories Quarterly Data
2018-03
2018-06
2018-09
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
23.92
21.65
25.19
28.01
30.77
29.07
27.93
34.01
25.98
23.98
25.03
27.08
28.25
28.00
NSE:ALKEM vs ZTS: Forward PE Ratio Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Alkem Laboratories's Forward PE Ratio, along with its competitors' market caps and Forward 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.
Alkem Laboratories Forward PE Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Alkem Laboratories's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Alkem Laboratories's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Alkem Laboratories (NSE:ALKEM) has a Forward PE Ratio of 28.74 as of Jul. 29, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Alkem Laboratories and its competitors. According to the industry distribution chart, Alkem Laboratories ranks #293 out of 409 companies in the Drug Manufacturers industry, placing it in the top 71.6%.
Is Alkem Laboratories' Forward PE Ratio too high?
Alkem Laboratories' current Forward PE Ratio is 28.74. The Drug Manufacturers industry median Forward PE Ratio is 17.42. Alkem Laboratories' value of 28.74 is 65% above this industry median. Based on the distribution chart, Alkem Laboratories ranks #293 out of 409 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Alkem Laboratories has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Alkem Laboratories' Forward PE Ratio compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Alkem Laboratories ranks #293 out of 409 companies for Forward PE Ratio. This places Alkem Laboratories in the lower half of its industry. The industry median Forward PE Ratio is 17.42. Alkem Laboratories' value of 28.74 is 65% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Drug Manufacturers company?
The median Forward PE Ratio among Drug Manufacturers companies is 17.42, based on 409 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alkem Laboratories's current Forward PE Ratio of 28.74 is 65% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Alkem Laboratories and its competitors. For the Drug Manufacturers industry, the median Forward PE Ratio is 17.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alkem Laboratories's current Forward PE Ratio is 28.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alkem Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Alkem Laboratories (NSE:ALKEM) is currently considered Fairly Valued. The stock's GF Value™ is ₹6,131.51, compared to a current price of ₹5,672.50 — trading 7.5% below its estimated fair value. The current Forward PE Ratio is 28.74 and 65% above the Drug Manufacturers industry median of 17.42. Alkem Laboratories' overall GF Score™ is 95/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Alkem Laboratories (NSE:ALKEM), the current Forward PE Ratio is 28.74 as of Jul. 29, 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 Alkem Laboratories (NSE:ALKEM) Overvalued in 2026?
Based on GuruFocus' analysis, Alkem Laboratories stock appears to be undervalued.
The current stock price of ₹5,672.50 is trading 7.5% below its estimated GF Value™ of ₹6,131.51.
GuruFocus considers Alkem Laboratories to be Fairly Valued.
Key valuation signals for NSE:ALKEM:
Forward PE Ratio: 28.74
GF Value™: ₹6,131.51 vs. price of ₹5,672.50 (7.5% below fair value)
Industry Position: 65% above the Drug Manufacturers median (#293 of 409)
No single metric tells the full story. See the NSE:ALKEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alkem Laboratories Ltd is an Indian pharmaceutical company engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products. The company produces branded generics, generic drugs, active pharmaceutical ingredients (APIs) and nutraceuticals in acute and chronic therapeutic areas, such as anti-infective, pain and analgesics, vitamins/minerals/nutrients, cardiac and Diabetology, Gynecology, neuro/central nervous system, dermatology, anti-diabetes, anti-osteoporosis, cardiovascular, and muscle relaxants, which are marketed in Indian and International markets. It operates through the pharmaceutical business segment.
95GF Score
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