Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) 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 .
Cholamandalam Investment and Finance Co Forward PE Ratio Related Terms
Cholamandalam Investment and Finance Co Forward PE Ratio Historical Data
* 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.
Cholamandalam Investment and Finance Co Forward PE Ratio Chart
Cholamandalam Investment and Finance Co Annual Data
Trend
2017-03
2018-03
2019-03
2020-03
2021-03
2022-03
2023-03
2025-03
2026-03
Forward PE Ratio
15.75
18.76
15.27
6.63
18.83
22.57
21.69
24.10
18.50
Cholamandalam Investment and Finance Co Quarterly Data
2016-12
2017-03
2017-06
2017-09
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
2026-06
Forward PE Ratio
15.46
15.75
17.89
17.83
18.76
19.34
16.21
14.04
15.27
15.55
16.16
11.92
6.63
11.43
33.67
16.03
18.83
20.37
23.58
15.70
22.57
19.65
24.21
20.79
21.69
31.06
18.00
24.10
25.86
25.11
21.78
18.50
23.66
NSE:CHOLAFIN vs V, MA, AXP: Forward PE Ratio Comparison
For the Credit Services subindustry, Cholamandalam Investment and Finance Co'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.
Cholamandalam Investment and Finance Co Forward PE Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Cholamandalam Investment and Finance Co's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Cholamandalam Investment and Finance Co's Forward PE Ratio falls into.
Cholamandalam Investment and Finance Co Forward PE Ratio Calculation
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.
Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) has a Forward PE Ratio of 23.84 as of Aug. 22, 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 Cholamandalam Investment and Finance Co and its competitors. According to the industry distribution chart, Cholamandalam Investment and Finance Co ranks #171 out of 188 companies in the Credit Services industry, placing it in the top 91%.
Is Cholamandalam Investment and Finance Co's Forward PE Ratio too high?
Cholamandalam Investment and Finance Co's current Forward PE Ratio is 23.84. The Credit Services industry median Forward PE Ratio is 10.40. Cholamandalam Investment and Finance Co's value of 23.84 is 129.2% above this industry median. Based on the distribution chart, Cholamandalam Investment and Finance Co ranks #171 out of 188 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Cholamandalam Investment and Finance Co has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cholamandalam Investment and Finance Co's Forward PE Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Cholamandalam Investment and Finance Co ranks #171 out of 188 companies for Forward PE Ratio. This places Cholamandalam Investment and Finance Co in the lower half of its industry. The industry median Forward PE Ratio is 10.40. Cholamandalam Investment and Finance Co's value of 23.84 is 129.2% 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 Credit Services company?
The median Forward PE Ratio among Credit Services companies is 10.40, based on 188 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. Cholamandalam Investment and Finance Co's current Forward PE Ratio of 23.84 is 129.2% 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 Cholamandalam Investment and Finance Co and its competitors. For the Credit Services industry, the median Forward PE Ratio is 10.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cholamandalam Investment and Finance Co's current Forward PE Ratio is 23.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cholamandalam Investment and Finance Co stock overvalued right now?
Based on GuruFocus' analysis, Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,155.78, compared to a current price of ₹1,862.90 — trading 13.6% below its estimated fair value. The current Forward PE Ratio is 23.84 and 129.2% above the Credit Services industry median of 10.40. Cholamandalam Investment and Finance Co's overall GF Score™ is 76/100 with 7 warning signs 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 Cholamandalam Investment and Finance Co (NSE:CHOLAFIN), the current Forward PE Ratio is 23.84 as of Aug. 22, 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 Cholamandalam Investment and Finance Co (NSE:CHOLAFIN) Overvalued in 2026?
Based on GuruFocus' analysis, Cholamandalam Investment and Finance Co stock appears to be undervalued.
The current stock price of ₹1,862.90 is trading 13.6% below its estimated GF Value™ of ₹2,155.78.
GuruFocus considers Cholamandalam Investment and Finance Co to be Modestly Undervalued.
Key valuation signals for NSE:CHOLAFIN:
Forward PE Ratio: 23.84
GF Value™: ₹2,155.78 vs. price of ₹1,862.90 (13.6% below fair value)
Industry Position: 129.2% above the Credit Services median (#171 of 188)
No single metric tells the full story. See the NSE:CHOLAFIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cholamandalam Investment and Finance Co Ltd serves as the financial services arm of the Murugappa Group. Its subsidiaries include Cholamandalam Securities Limited (CSEC) and Cholamandalam Home Finance Limited (CHFL). The company's operating segments include; Vehicle finance loans its key revenue generating segment, which provides loans for the purchase of vehicles, tractors, and construction equipment; the Home Loans segment includes loans given for the acquisition of residential property; Loan against property includes loans to the customer against immovable property; and Other loans represents loans against shares and SME loans. The company operates solely in India.
76GF Score
Get the complete analysis for NSE:CHOLAFIN
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:CHOLAFIN has been successfully added to your 
