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Raama FinanceBOM:538540 -4.74%55 PB Ratio is 5.00 as of Aug. 04, 2026, which is 558% above its 10-year median of 0.76. GuruFocus rates BOM:538540 with a GF Score™ of 55/100. The stock has 3 warning signs investors should review. Among 525 Credit Services companies, Raama Finance ranks worse than 93.71% on this metric.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2026-08-04), Raama Finance's share price is ₹18.09. Raama Finance's Book Value per Share for the quarter that ended in Mar. 2026 was ₹3.62. Hence, Raama Finance's PB Ratio of today is 5.00.
The historical rank and industry rank for Raama Finance's PB Ratio or its related term are showing as below:
BOM:538540'
s PB Ratio Range Over the Past 10 Years
Min: 0.18 Med: 0.76 Max: 13.4
Current: 5.38
During the past 13 years, Raama Finance's highest PB Ratio was 13.40. The lowest was 0.18. And the median was 0.76.
BOM:538540's PB Ratio is ranked worse than 93.71% of 525
companies
in the Credit Services industry
Industry Median: 1.06
vs BOM:538540: 5.38
During the past 12 months, Raama Finance's average Book Value Per Share Growth Rate was 229.50% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 49.80% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 19.30% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 6.20% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Raama Finance was 49.80% per year. The lowest was 0.50% per year. And the median was 0.60% per year.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Raama Finance PB Ratio Related Terms
Raama Finance PB Ratio Historical Data
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The historical data trend for Raama Finance's PB 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.
For the Credit Services subindustry, Raama Finance's PB Ratio, along with its competitors' market caps and PB 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.
Raama Finance PB Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Raama Finance's PB Ratio distribution charts can be found below:
* The bar in red indicates where Raama Finance's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
Raama Finance's PB Ratio for today is calculated as follows:
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Raama Finance (BOM:538540) has a PB Ratio of 5.00 as of Aug. 04, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Raama Finance and its competitors. This is 558% above median its historical median of 0.76. Over the past decade, Raama Finance's PB Ratio has ranged from 0.18 to 13.40. According to the industry distribution chart, Raama Finance ranks #492 out of 525 companies in the Credit Services industry, placing it in the top 93.7%.
Is Raama Finance's PB Ratio too high?
Raama Finance's current PB Ratio of 5.00 is 558% above median its 10-year median of 0.76. Over the past 10 years, this metric has ranged from a low of 0.18 to a high of 13.40. The Credit Services industry median PB Ratio is 1.06. Raama Finance's value of 5.00 is 371.7% above this industry median. Based on the distribution chart, Raama Finance ranks #492 out of 525 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Raama Finance has a GF Score™ of 55/100, reflecting its overall financial health beyond just this single metric.
How does Raama Finance's PB Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Raama Finance ranks #492 out of 525 companies for PB Ratio. This places Raama Finance in the lower half of its industry. The industry median PB Ratio is 1.06. Raama Finance's value of 5.00 is 371.7% above this benchmark. Historically, Raama Finance's own PB Ratio has ranged from 0.18 to 13.40 over the past decade. While the company's 10-year median is 0.76 vs. the industry median of 1.06, Raama Finance 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 PB Ratio for a Credit Services company?
The median PB Ratio among Credit Services companies is 1.06, based on 525 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Raama Finance's current PB Ratio of 5.00 is 371.7% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Raama Finance and its competitors. For the Credit Services industry, the median PB Ratio is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Raama Finance's current PB Ratio is 5.00, which is 558% above median its own 10-year median of 0.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Raama Finance stock overvalued right now?
Raama Finance (BOM:538540) has a current PB Ratio of 5.00. The current PB Ratio is 5.00, which is 558% above median its 10-year median of 0.76 and 371.7% above the Credit Services industry median of 1.06. Raama Finance's overall GF Score™ is 55/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Raama Finance (BOM:538540), the current PB Ratio is 5.00 as of Aug. 04, 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.
Raama Finance Ltd, formerly known as Ramchandra Leasing & Finance Ltd, is a non-banking finance company. It is engaged in commercial loan activities. Its services include leasing (short term and long term) and hire purchase. It provides financial assistance in the form of loans (secured and unsecured) to corporate bodies. The company offers working capital term loan for a term period of a year and two.
55GF Score
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