Indian Railway FinanceNSE:IRFC +2.02%70 PS Ratio is 4.30 as of Jul. 12, 2026, which is 10% above its 10-year median of 3.90. GuruFocus rates NSE:IRFC with a GF Score™ of 70/100 and a GF Value™ of ₹127.85 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 522 Credit Services companies, Indian Railway Finance ranks worse than 63.79% on this metric.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Indian Railway Finance's share price is ₹89.90.
Indian Railway Finance's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2026 was ₹20.89. Hence, Indian Railway Finance's PS Ratio for today is 4.30.
Good Sign:
Indian Railway Finance Corp Ltd stock PS Ratio (=4.31) is close to 2-year low of 4.3.
The historical rank and industry rank for Indian Railway Finance's PS Ratio or its related term are showing as below:
NSE:IRFC'
s PS Ratio Range Over the Past 10 Years
Min: 1.22 Med: 3.9 Max: 10.67
Current: 4.3
During the past 9 years, Indian Railway Finance's highest PS Ratio was 10.67. The lowest was 1.22. And the median was 3.90.
NSE:IRFC's PS Ratio is ranked worse than 63.79% of 522
companies
in the Credit Services industry
Industry Median: 2.915
vs NSE:IRFC: 4.30
During the past 9 years, Indian Railway Finance's highest 3-Year average Revenue per Share Growth Rate was 22.80% per year. The lowest was 4.80% per year. And the median was 18.40% per year.
Back to Basics: PS Ratio
Indian Railway Finance (NSE:IRFC) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
* 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 PS Ratio, along with its competitors' market caps and PS 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 PS Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indian Railway Finance's PS Ratio distribution charts can be found below:
* The bar in red indicates where Indian Railway Finance's PS Ratio falls into.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Indian Railway Finance's Share Price of today is ₹89.90. Indian Railway Finance's Revenue per Share 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 ₹20.89.
* 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:
Indian Railway Finance (NSE:IRFC) has a PS Ratio of 4.30 as of Jul. 12, 2026. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Indian Railway Finance and its competitors. This is 10% above median its historical median of 3.90. Over the past decade, Indian Railway Finance's PS Ratio has ranged from 1.22 to 10.67. According to the industry distribution chart, Indian Railway Finance ranks #333 out of 522 companies in the Credit Services industry, placing it in the top 63.8%.
Is Indian Railway Finance's PS Ratio too high?
Indian Railway Finance's current PS Ratio of 4.30 is 10% above median its 10-year median of 3.90. Over the past 10 years, this metric has ranged from a low of 1.22 to a high of 10.67. The Credit Services industry median PS Ratio is 2.92. Indian Railway Finance's value of 4.30 is 47.5% above this industry median. Based on the distribution chart, Indian Railway Finance ranks #333 out of 522 companies in the Credit Services industry, which is below the industry midpoint. Overall, Indian Railway Finance has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Finance's PS Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Indian Railway Finance ranks #333 out of 522 companies for PS Ratio. This places Indian Railway Finance in the lower half of its industry. The industry median PS Ratio is 2.92. Indian Railway Finance's value of 4.30 is 47.5% above this benchmark. Historically, Indian Railway Finance's own PS Ratio has ranged from 1.22 to 10.67 over the past decade. While the company's 10-year median is 3.90 vs. the industry median of 2.92, 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 PS Ratio for a Credit Services company?
The median PS Ratio among Credit Services companies is 2.92, based on 522 companies in the industry. Companies in the top quartile (top 25%) have a PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Indian Railway Finance's current PS Ratio of 4.30 is 47.5% 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 PS Ratio mean?
A high PS Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Indian Railway Finance and its competitors. For the Credit Services industry, the median PS Ratio is 2.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Finance's current PS Ratio is 4.30, which is 10% above median its own 10-year median of 3.90. 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 ₹127.85, compared to a current price of ₹89.90 — trading 29.7% below its estimated fair value. The current PS Ratio is 4.30, which is 10% above median its 10-year median of 3.90 and 47.5% above the Credit Services industry median of 2.92. Indian Railway Finance's overall GF Score™ is 70/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PS Ratio calculated?
PS Ratio is calculated from a company's financial statements. For Indian Railway Finance (NSE:IRFC), the current PS Ratio is 4.30 as of Jul. 12, 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 ₹89.90 is trading 29.7% below its estimated GF Value™ of ₹127.85.
GuruFocus considers Indian Railway Finance to be Possible Value Trap.
Key valuation signals for NSE:IRFC:
PS Ratio: 4.30 (10% above median its 10-year median of 3.90)
GF Value™: ₹127.85 vs. price of ₹89.90 (29.7% below fair value)
Industry Position: 47.5% above the Credit Services median (#333 of 522)
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.
70GF Score
Get the complete analysis for NSE:IRFC
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