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Parag Milk Food (BOM:539889) PE Ratio : 26.04 (As of Dec. 11, 2024)


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What is Parag Milk Food PE Ratio?

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-12-11), Parag Milk Food's share price is ₹214.60. Parag Milk Food's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was ₹8.24. Therefore, Parag Milk Food's PE Ratio for today is 26.04.

During the past 13 years, Parag Milk Food's highest PE Ratio was 1429.00. The lowest was 4.28. And the median was 24.93.

Parag Milk Food's EPS (Diluted) for the three months ended in Sep. 2024 was ₹2.34. Its EPS (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 was ₹8.24.

As of today (2024-12-11), Parag Milk Food's share price is ₹214.60. Parag Milk Food's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2024 was ₹8.24. Therefore, Parag Milk Food's PE Ratio without NRI ratio for today is 26.04.

During the past 13 years, Parag Milk Food's highest PE Ratio without NRI was 160.20. The lowest was 3.51. And the median was 24.90.

Parag Milk Food's EPS without NRI for the three months ended in Sep. 2024 was ₹2.34. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2024 was ₹8.24.

During the past 12 months, Parag Milk Food's average EPS without NRI Growth Rate was 23.90% per year. During the past 3 years, the average EPS without NRI Growth Rate was 42.40% per year.

During the past 13 years, Parag Milk Food's highest 3-Year average EPS without NRI Growth Rate was 236.00% per year. The lowest was -37.60% per year. And the median was 26.90% per year.

Parag Milk Food's EPS (Basic) for the three months ended in Sep. 2024 was ₹2.45. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2024 was ₹8.48.

Back to Basics: PE Ratio


Parag Milk Food PE Ratio Historical Data

The historical data trend for Parag Milk Food's 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.

* Premium members only.

Parag Milk Food PE Ratio Chart

Parag Milk Food Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.73 42.91 At Loss 14.67 27.83

Parag Milk Food Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 32.17 27.08 27.83 21.98 23.36

Competitive Comparison of Parag Milk Food's PE Ratio

For the Packaged Foods subindustry, Parag Milk Food's PE Ratio, along with its competitors' market caps and 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.


Parag Milk Food's PE Ratio Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Parag Milk Food's PE Ratio distribution charts can be found below:

* The bar in red indicates where Parag Milk Food's PE Ratio falls into.



Parag Milk Food PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Parag Milk Food's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=214.60/8.240
=26.04

Parag Milk Food's Share Price of today is ₹214.60.
Parag Milk Food's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹8.24.


* 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:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Parag Milk Food  (BOM:539889) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.

PE Ratio can also be affected by non-recurring-items 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.


Parag Milk Food PE Ratio Related Terms

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Parag Milk Food Business Description

Traded in Other Exchanges
Address
10th Floor Nirmal Building, Nariman Point, Mumbai, MH, IND, 400021
Parag Milk Food Ltd is an India based company engaged in manufacturing, trading, and processing of milk and milk products. The products offered by the company are milk, cheese, butter, ghee, fresh cream, milk powder, flavoured milk, lassi, whey protein powder, curd, and other related products. The company markets its products under the brands Gowardhan, Go, Topp up and PRIDE OF COWS. It sells its products in India, and also exports internationally, of which majority of the sales revenue is generated within India.

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