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Natco Pharma (NSE:NATCOPHARM) 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 .
Natco Pharma Forward PE Ratio Related Terms
Natco Pharma Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for Natco Pharma'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.
Natco Pharma Forward PE Ratio Chart
Natco Pharma Annual Data
Trend
2025-03
2026-03
Forward PE Ratio
6.73
23.99
Natco Pharma Quarterly Data
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
2026-06
Forward PE Ratio
12.99
15.72
11.69
6.73
10.74
11.67
23.83
23.99
21.74
NSE:NATCOPHARM vs ZTS: Forward PE Ratio Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Natco Pharma'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.
Natco Pharma Forward PE Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Natco Pharma'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.
Natco Pharma (NSE:NATCOPHARM) has a Forward PE Ratio of 19.95 as of Sep. 02, 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 Natco Pharma and its competitors. According to the industry distribution chart, Natco Pharma ranks #274 out of 412 companies in the Drug Manufacturers industry, placing it in the top 66.5%.
Is Natco Pharma's Forward PE Ratio too high?
Natco Pharma's current Forward PE Ratio is 19.95. The Drug Manufacturers industry median Forward PE Ratio is 14.81. Natco Pharma's value of 19.95 is 34.8% above this industry median. Based on the distribution chart, Natco Pharma ranks #274 out of 412 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Natco Pharma has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's Forward PE Ratio compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #274 out of 412 companies for Forward PE Ratio. This places Natco Pharma in the lower half of its industry. The industry median Forward PE Ratio is 14.81. Natco Pharma's value of 19.95 is 34.8% 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 14.81, based on 412 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. Natco Pharma's current Forward PE Ratio of 19.95 is 34.8% 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 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 Natco Pharma and its competitors. For the Drug Manufacturers industry, the median Forward PE Ratio is 14.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current Forward PE Ratio is 19.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (NSE:NATCOPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹820.24, compared to a current price of ₹849.20 — trading 3.5% above its estimated fair value. The current Forward PE Ratio is 19.95 and 34.8% above the Drug Manufacturers industry median of 14.81. Natco Pharma's overall GF Score™ is 87/100 with 2 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 Natco Pharma (NSE:NATCOPHARM), the current Forward PE Ratio is 19.95 as of Sep. 02, 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 Natco Pharma (NSE:NATCOPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Natco Pharma stock appears to be overvalued.
The current stock price of ₹849.20 is trading 3.5% above its estimated GF Value™ of ₹820.24.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
Forward PE Ratio: 19.95
GF Value™: ₹820.24 vs. price of ₹849.20 (3.5% above fair value)
Industry Position: 34.8% above the Drug Manufacturers median (#274 of 412)
No single metric tells the full story. See the NSE:NATCOPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
87GF Score
Get the complete analysis for NSE:NATCOPHARM
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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