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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.
Indian Railway FinanceNSE:IRFC -0.52%71 PB Ratio is 2.04 as of Jul. 16, 2026, which is 3% below its 10-year median of 2.11. GuruFocus rates NSE:IRFC with a GF Score™ of 71/100 and a GF Value™ of ₹127.92 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 525 Credit Services companies, Indian Railway Finance ranks worse than 74.67% on this metric.
Indian Railway Finance Corp Ltd stock PB Ratio (=2.07) is close to 2-year low of 2.07.
The historical rank and industry rank for Indian Railway Finance's PB Ratio or its related term are showing as below:
NSE:IRFC'
s PB Ratio Range Over the Past 10 Years
Min: 0.61 Med: 2.11 Max: 5.59
Current: 2.04
During the past 9 years, Indian Railway Finance's highest PB Ratio was 5.59. The lowest was 0.61. And the median was 2.11.
NSE:IRFC's PB Ratio is ranked worse than 74.67% of 525
companies
in the Credit Services industry
Industry Median: 1.05
vs NSE:IRFC: 2.04
During the past 12 months, Indian Railway Finance's average Book Value Per Share Growth Rate was 7.70% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 8.30% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 9.50% per year.
During the past 9 years, the highest 3-Year average Book Value Per Share Growth Rate of Indian Railway Finance was 20.90% per year. The lowest was 8.30% per year. And the median was 12.40% per year.
Back to Basics: PB Ratio
Indian Railway Finance (NSE:IRFC) PB Ratio Explanation
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.
* 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, Indian Railway 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.
Indian Railway Finance PB Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indian Railway Finance's PB Ratio distribution charts can be found below:
* The bar in red indicates where Indian Railway 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.
* 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.
Indian Railway Finance (NSE:IRFC) has a PB Ratio of 2.04 as of Jul. 16, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Indian Railway Finance and its competitors. This is near median its historical median of 2.11. Over the past decade, Indian Railway Finance's PB Ratio has ranged from 0.61 to 5.59. According to the industry distribution chart, Indian Railway Finance ranks #392 out of 525 companies in the Credit Services industry, placing it in the top 74.7%.
Is Indian Railway Finance's PB Ratio too high?
Indian Railway Finance's current PB Ratio of 2.04 is near median its 10-year median of 2.11. Over the past 10 years, this metric has ranged from a low of 0.61 to a high of 5.59. The Credit Services industry median PB Ratio is 1.05. Indian Railway Finance's value of 2.04 is 94.3% above this industry median. Based on the distribution chart, Indian Railway Finance ranks #392 out of 525 companies in the Credit Services industry, which is below the industry midpoint. Overall, Indian Railway Finance has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Finance's PB Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Indian Railway Finance ranks #392 out of 525 companies for PB Ratio. This places Indian Railway Finance in the lower half of its industry. The industry median PB Ratio is 1.05. Indian Railway Finance's value of 2.04 is 94.3% above this benchmark. Historically, Indian Railway Finance's own PB Ratio has ranged from 0.61 to 5.59 over the past decade. While the company's 10-year median is 2.11 vs. the industry median of 1.05, Indian Railway 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 1.05, 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. Indian Railway Finance's current PB Ratio of 2.04 is 94.3% 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 Indian Railway Finance and its competitors. For the Credit Services industry, the median PB Ratio is 1.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Finance's current PB Ratio is 2.04, which is near median its own 10-year median of 2.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Finance stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Finance (NSE:IRFC) is currently considered Possible Value Trap. The stock's GF Value™ is ₹127.92, compared to a current price of ₹88.41 — trading 30.9% below its estimated fair value. The current PB Ratio is 2.04, which is near median its 10-year median of 2.11 and 94.3% above the Credit Services industry median of 1.05. Indian Railway Finance's overall GF Score™ is 71/100 with 9 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 Indian Railway Finance (NSE:IRFC), the current PB Ratio is 2.04 as of Jul. 16, 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 Indian Railway Finance (NSE:IRFC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Finance stock appears to be undervalued.
The current stock price of ₹88.41 is trading 30.9% below its estimated GF Value™ of ₹127.92.
GuruFocus considers Indian Railway Finance to be Possible Value Trap.
Key valuation signals for NSE:IRFC:
PB Ratio: 2.04 (near median its 10-year median of 2.11)
GF Value™: ₹127.92 vs. price of ₹88.41 (30.9% below fair value)
Industry Position: 94.3% above the Credit Services median (#392 of 525)
No single metric tells the full story. See the NSE:IRFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Finance Corp Ltd is engaged in the business of borrowing funds from the financial markets to finance the acquisition/creation of assets, which are then leased out to the Indian Railways or any entity under the Ministry of Railways. Its only operating segment is Leasing and Finance. The company generates maximum revenue from Lease Income.
71GF Score
Get the complete analysis for NSE:IRFC
PB Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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