Amara Raja Energy & Mobility Valuation
Is ARE&M undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
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 ARE&M when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ARE&M (₹1115.7) is trading above our estimate of fair value (₹546.37)
Significantly Below Fair Value: ARE&M is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ARE&M?
Other financial metrics that can be useful for relative valuation.
What is ARE&M's n/a Ratio? | |
---|---|
n/a | 0x |
n/a | n/a |
Market Cap | ₹203.94b |
Key Statistics | |
---|---|
Enterprise Value/Revenue | 1.8x |
Enterprise Value/EBITDA | 13.4x |
PEG Ratio | 2.2x |
Price to Earnings Ratio vs Peers
How does ARE&M's PE Ratio compare to its peers?
Company | Forward PE | Estimated Growth | Market Cap |
---|---|---|---|
Peer Average | 62.3x | ||
SCHNEIDER Schneider Electric Infrastructure | 92.8x | n/a | ₹198.2b |
RRKABEL R R Kabel | 66.4x | 30.8% | ₹189.1b |
FINCABLES Finolex Cables | 25.5x | 10.8% | ₹163.0b |
532953 V-Guard Industries | 64.5x | 19.6% | ₹151.1b |
ARE&M Amara Raja Energy & Mobility | 25.1x | 11.5% | ₹203.9b |
Price-To-Earnings vs Peers: ARE&M is good value based on its Price-To-Earnings Ratio (25.1x) compared to the peer average (62.3x).
Price to Earnings Ratio vs Industry
How does ARE&M's PE Ratio compare vs other companies in the IN Electrical Industry?
Price-To-Earnings vs Industry: ARE&M is good value based on its Price-To-Earnings Ratio (25.1x) compared to the Indian Electrical industry average (44.8x).
Price to Earnings Ratio vs Fair Ratio
What is ARE&M'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.
Fair Ratio | |
---|---|
Current PE Ratio | 25.1x |
Fair PE Ratio | 32.2x |
Price-To-Earnings vs Fair Ratio: ARE&M is good value based on its Price-To-Earnings Ratio (25.1x) compared to the estimated Fair Price-To-Earnings Ratio (32.2x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
---|---|---|---|---|---|---|---|
Current | ₹1,115.70 | ₹883.06 -20.9% | 18.6% | ₹1,200.00 | ₹579.00 | n/a | 17 |
Apr ’25 | ₹795.00 | ₹851.59 +7.1% | 17.2% | ₹1,100.00 | ₹579.00 | n/a | 17 |
Mar ’25 | ₹846.30 | ₹851.59 +0.6% | 17.2% | ₹1,100.00 | ₹579.00 | n/a | 17 |
Feb ’25 | ₹880.30 | ₹750.40 -14.8% | 15.0% | ₹1,050.00 | ₹579.00 | n/a | 15 |
Jan ’25 | ₹825.05 | ₹707.06 -14.3% | 13.0% | ₹900.00 | ₹480.00 | n/a | 18 |
Dec ’24 | ₹769.20 | ₹707.47 -8.0% | 13.4% | ₹900.00 | ₹480.00 | n/a | 17 |
Nov ’24 | ₹617.90 | ₹666.38 +7.8% | 11.2% | ₹767.00 | ₹480.00 | n/a | 16 |
Oct ’24 | ₹637.40 | ₹667.81 +4.8% | 10.7% | ₹767.00 | ₹480.00 | n/a | 16 |
Sep ’24 | ₹625.55 | ₹680.33 +8.8% | 7.9% | ₹767.00 | ₹580.00 | n/a | 15 |
Aug ’24 | ₹641.45 | ₹686.50 +7.0% | 8.8% | ₹790.00 | ₹580.00 | n/a | 16 |
Jul ’24 | ₹681.20 | ₹652.13 -4.3% | 12.1% | ₹779.00 | ₹450.00 | n/a | 16 |
Jun ’24 | ₹621.45 | ₹641.47 +3.2% | 11.6% | ₹779.00 | ₹450.00 | n/a | 15 |
May ’24 | ₹601.10 | ₹646.77 +7.6% | 14.2% | ₹819.00 | ₹450.00 | ₹1,099.70 | 15 |
Apr ’24 | ₹579.10 | ₹634.78 +9.6% | 15.6% | ₹819.00 | ₹450.00 | ₹795.00 | 16 |
Mar ’24 | ₹568.25 | ₹625.86 +10.1% | 16.0% | ₹819.00 | ₹450.00 | ₹846.30 | 18 |
Feb ’24 | ₹593.70 | ₹623.50 +5.0% | 15.1% | ₹779.00 | ₹450.00 | ₹880.30 | 19 |
Jan ’24 | ₹571.75 | ₹603.75 +5.6% | 14.6% | ₹774.50 | ₹450.00 | ₹825.05 | 18 |
Dec ’23 | ₹645.75 | ₹588.12 -8.9% | 12.9% | ₹750.00 | ₹450.00 | ₹769.20 | 17 |
Nov ’23 | ₹515.30 | ₹554.25 +7.6% | 11.8% | ₹733.00 | ₹450.00 | ₹617.90 | 16 |
Oct ’23 | ₹491.00 | ₹555.19 +13.1% | 11.8% | ₹733.00 | ₹450.00 | ₹637.40 | 16 |
Sep ’23 | ₹507.90 | ₹573.94 +13.0% | 10.7% | ₹733.00 | ₹480.00 | ₹625.55 | 16 |
Aug ’23 | ₹501.60 | ₹565.67 +12.8% | 11.0% | ₹737.00 | ₹490.00 | ₹641.45 | 15 |
Jul ’23 | ₹469.15 | ₹595.33 +26.9% | 12.4% | ₹775.00 | ₹500.00 | ₹681.20 | 15 |
Jun ’23 | ₹502.70 | ₹605.40 +20.4% | 14.3% | ₹780.00 | ₹500.00 | ₹621.45 | 15 |
May ’23 | ₹562.50 | ₹686.73 +22.1% | 14.6% | ₹903.00 | ₹513.00 | ₹601.10 | 15 |
Analyst Forecast: Target price is lower than the current share price.