Rane Engine Valve Limited

NSEI:RANEENGINE Stock Report

Market Cap: ₹2.8b

Rane Engine Valve Valuation

Is RANEENGINE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RANEENGINE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RANEENGINE (₹393) is trading above our estimate of fair value (₹40.81)

Significantly Below Fair Value: RANEENGINE is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RANEENGINE?

Key metric: As RANEENGINE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RANEENGINE. This is calculated by dividing RANEENGINE's market cap by their current earnings.
What is RANEENGINE's PE Ratio?
PE Ratio17.1x
Earnings₹163.70m
Market Cap₹2.76b

Price to Earnings Ratio vs Peers

How does RANEENGINE's PE Ratio compare to its peers?

The above table shows the PE ratio for RANEENGINE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.4x
538987 Talbros Engineering
16.2xn/a₹2.9b
520021 Omax Autos
6.9xn/a₹2.4b
504908 Duncan Engineering
37.9xn/a₹2.4b
513252 Jay Ushin
20.4xn/a₹2.7b
RANEENGINE Rane Engine Valve
17.1xn/a₹2.8b

Price-To-Earnings vs Peers: RANEENGINE is good value based on its Price-To-Earnings Ratio (17.1x) compared to the peer average (20.3x).

Price to Earnings Ratio vs Industry

How does RANEENGINE's PE Ratio compare vs other companies in the IN Auto Components Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
513262 Steel Strips Wheels
4.8x-31.3%US$379.76m
INNOVATIVE Innovative Tyres & Tubes
0.3xn/aUS$1.22m
505100 India Radiators
0.8xn/aUS$94.64k
523415 Coventry Coil-O-Matic (Haryana)
0.9xn/aUS$88.40k
No more companies available in this PE range
RANEENGINE 17.1xIndustry Avg. 30.8xNo. of Companies17PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RANEENGINE is good value based on its Price-To-Earnings Ratio (17.1x) compared to the Indian Auto Components industry average (30.8x).

Price to Earnings Ratio vs Fair Ratio

What is RANEENGINE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RANEENGINE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RANEENGINE's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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