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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 (2026-07-17), Alkem Laboratories's share price is ₹5709.00.
Alkem Laboratories's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was ₹192.51. Therefore, Alkem Laboratories's PE Ratio for today is 29.66.
During the past 13 years, Alkem Laboratories's highest PE Ratio was 43.41. The lowest was 20.46. And the median was 28.43.
During the past 12 months, Alkem Laboratories's average EPS without NRIGrowth Rate was 12.90% per year.
During the past 3 years, the average EPS without NRIGrowth Rate was 32.50% per year.
During the past 5 years, the average EPS without NRIGrowth Rate was 11.50% per year.
During the past 10 years, the average EPS without NRIGrowth Rate was 13.80% per year.
During the past 13 years, Alkem Laboratories's highest 3-Year average EPS without NRI Growth Rate was 32.70% per year. The lowest was -2.80% per year. And the median was 11.85% per year.
Alkem Laboratories's EPS (Basic) for the
three
months ended in Mar. 2026 was ₹19.77.
Its EPS (Basic) for the trailing twelve months (TTM) ended in Mar. 2026 was ₹192.51.
Back to Basics: PE Ratio
Alkem Laboratories (NSE:ALKEM) 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.
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.
Alkem Laboratories PE Ratio Related Terms
Alkem Laboratories PE Ratio Historical Data
* Premium members only.
The historical data trend for Alkem Laboratories'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Alkem Laboratories'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.
Alkem Laboratories PE Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Alkem Laboratories's PE Ratio distribution charts can be found below:
* The bar in red indicates where Alkem Laboratories's PE Ratio falls into.
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.
Alkem Laboratories's Share Price of today is ₹5709.00. Alkem Laboratories's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹192.51.
* 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.
Alkem Laboratories (NSE:ALKEM) has a PE Ratio of 29.66 as of Jul. 17, 2026. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on Alkem Laboratories and its competitors. This is near median its historical median of 28.43. Over the past decade, Alkem Laboratories' PE Ratio has ranged from 20.46 to 43.41.
Is Alkem Laboratories' PE Ratio too high?
Alkem Laboratories' current PE Ratio of 29.66 is near median its 10-year median of 28.43. Over the past 10 years, this metric has ranged from a low of 20.46 to a high of 43.41. Overall, Alkem Laboratories has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Alkem Laboratories' PE Ratio compare to ZTS and UTHR?
Alkem Laboratories' PE Ratio of 29.66 can be compared against companies in the Drug Manufacturers industry. Historically, Alkem Laboratories' own PE Ratio has ranged from 20.46 to 43.41 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PE Ratio for a Drug Manufacturers company?
A good PE Ratio depends on the Drug Manufacturers industry context. However, PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PE Ratio mean?
A high PE Ratio can signal that a stock is expensive relative to its fundamentals. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on Alkem Laboratories and its competitors. Alkem Laboratories's current PE Ratio is 29.66, which is near median its own 10-year median of 28.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alkem Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Alkem Laboratories (NSE:ALKEM) is currently considered Fairly Valued. The stock's GF Value™ is ₹6,108.20, compared to a current price of ₹5,709.00 — trading 6.5% below its estimated fair value. The current PE Ratio is 29.66, which is near median its 10-year median of 28.43. Alkem Laboratories' overall GF Score™ is 97/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PE Ratio calculated?
PE Ratio is calculated from a company's financial statements. For Alkem Laboratories (NSE:ALKEM), the current PE Ratio is 29.66 as of Jul. 17, 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 Alkem Laboratories (NSE:ALKEM) Overvalued in 2026?
Based on GuruFocus' analysis, Alkem Laboratories stock appears to be undervalued.
The current stock price of ₹5,709.00 is trading 6.5% below its estimated GF Value™ of ₹6,108.20.
GuruFocus considers Alkem Laboratories to be Fairly Valued.
Key valuation signals for NSE:ALKEM:
PE Ratio: 29.66 (near median its 10-year median of 28.43)
GF Value™: ₹6,108.20 vs. price of ₹5,709.00 (6.5% below fair value)
No single metric tells the full story. See the NSE:ALKEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alkem Laboratories Ltd is an Indian pharmaceutical company engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products. The company produces branded generics, generic drugs, active pharmaceutical ingredients (APIs) and nutraceuticals in acute and chronic therapeutic areas, such as anti-infective, pain and analgesics, vitamins/minerals/nutrients, cardiac and Diabetology, Gynecology, neuro/central nervous system, dermatology, anti-diabetes, anti-osteoporosis, cardiovascular, and muscle relaxants, which are marketed in Indian and International markets. It operates through the pharmaceutical business segment.
97GF Score
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