Aarti Pharmalabs Valuation

Is AARTIPHARM 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 AARTIPHARM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AARTIPHARM (₹653.4) is trading above our estimate of fair value (₹1.9)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AARTIPHARM. This is calculated by dividing AARTIPHARM's market cap by their current earnings.
What is AARTIPHARM's PE Ratio?
PE Ratio	26x
Earnings	₹2.28b
Market Cap	₹59.22b

AARTIPHARM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.2x
Enterprise Value/EBITDA	15.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AARTIPHARM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	56.5x
SUPRIYA Supriya Lifescience	41.2x	14.3%	₹64.9b
JSLL Jeena Sikho Lifecare	57.4x	n/a	₹48.4b
524735 Hikal	65.5x	49.2%	₹48.2b
ORCHPHARMA Orchid Pharma	61.9x	45.4%	₹74.0b
AARTIPHARM Aarti Pharmalabs	26x	n/a	₹59.2b

Price-To-Earnings vs Peers: AARTIPHARM is good value based on its Price-To-Earnings Ratio (26x) compared to the peer average (56.5x).

Price to Earnings Ratio vs Industry

How does AARTIPHARM's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
INDSWFTLAB Ind-Swift Laboratories	1.6x	n/a	US$70.43m
524652 Ind-Swift	2x	n/a	US$13.12m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: AARTIPHARM is good value based on its Price-To-Earnings Ratio (26x) compared to the Indian Pharmaceuticals industry average (31.7x).

Price to Earnings Ratio vs Fair Ratio

What is AARTIPHARM'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.

AARTIPHARM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	26x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AARTIPHARM'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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