JK Tyre & Industries Limited (Formerly JK Industries Limited)

India Country flag India
Sector: Tires
Ticker: 530007
ISIN: INE573A01042
Factsheet Factsheet

Market multiple valuation of JK Tyre & Industries Limited ( 530007 | IND)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of JK Tyre & Industries Limited is significantly lower than the median of its peer group: around 12.00. The company valuation of JK Tyre & Industries Limited according to these metrics is way below the market valuation of its peer group.
The P/Earnings NTM ratio of JK Tyre & Industries Limited is significantly lower than the average of its sector (Tires): 13.19. The company valuation of JK Tyre & Industries Limited according to these metrics is way below the market valuation of its sector.
The P/Earnings NTM ratio of JK Tyre & Industries Limited is significantly higher than its historical 5-year average: 4.6. The (current) company valuation of JK Tyre & Industries Limited is therefore way above its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2017P/E NTM
JK Tyre & Industries LimitedFree trialFree trialFree trial
International PeersFree trialFree trialFree trial
Tires13.3613.2113.19
BSE SENSEXN/AN/AN/A
India15.0419.9217.97
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Beta (Ref: BSE SENSEX)
Levered betaUnlevered beta
1-Year1.170.56
2-Year1.220.58
3-Year1.310.63
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Stock Perf excl. Dividends (in INR)
530007BSE SENSEXRel. Perf.
Year-to-Date37.4%19.9%17.5%
1-Week6.0%-1.1%7.1%
1-Month10.1%2.0%8.1%
1-Year8.4%10.9%-2.6%
3-Year54.0%17.3%36.7%
5-Year608.1%70.2%537.8%
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International Peers - JK Tyre & Industries Limited
Company NameCtryMarket
Cap.
last (mUSD)
JK Tyre & Industries Li...IND543
International Peers Median1.17
The Goodyear Tire & Rub...USA8 200
Nokian Renkaat OyjFIN6 049
Toyo Tire & Rubber Co.,...JPN2 800
Kenda Rubber Industrial...TWN1 247
Bridgestone Corp.JPN35 868
GPRV Analysis
JK Tyre & Industries Limited
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Quotes Chart

1-Year Rebased Stock Chart

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Multiples charts provide an effective way to quickly analyze a company's valuation over a period of time, and compare it against the valuation of another company, a personal list, or a market index.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).