2255.70 -11.00 (-0.49%)

33.56% Fall from 52W High

859.0K NSE+BSE Volume

NSE 03 Jun, 2025 3:54 PM (IST)

Dividend
Asian Paints Ltd. has an upcoming dividend of ₹20.55 per share due on 10 Jun 2025 See details

Analyze undervaluation/ overvaluation of Asian Paints Ltd. with current and 1 Year Forward PE

INSIGHT
Asian Paints Ltd. is undervalued at both current PE and future earnings estimates
Right Now : Current PE vs 5 year Average PE
Undervalued
Fair price

Based on 5Yr Average PE

2955.3
Upside

Current PE versus 5Yr Average PE

31.02 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Undervalued
Fair price

Based on 1Yr Forward EPS

3531.8
Upside

5 Yr Average PE & 1Yr Forward EPS

56.57 %
Info: The Asian Paints Ltd.'s current PE is 59.00 ,while its 5 year PE average is 77.3. Its forward PE based on analyst estimates is 49.4
Note: The forward P/E ratio (or forward price-to-earnings ratio) is calculated by dividing the current share price of a company by the estimated(1Yr) future (“forward”) earnings per share (EPS) of that company.
Choose Stock, Parameter and Date Range
Furthest date for non subscribers is 03-06-2023
generated report

Analyze undervaluation/ overvaluation of Asian Paints Ltd. with historical PE and PBV ratios

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from 03 Jun, 2023 to 02 Jun, 2025

Standalone P/E

Sell Zone

63.0% into P/E buy sell zone

% time spent below current P/E
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 494 days, Asian Paints Ltd. traded 311 (63.0%) days below the current P/E of on Standalone basis.

Consolidated P/E

Sell Zone

61.9% into P/E buy sell zone

% time spent below current P/E
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 494 days, Asian Paints Ltd. traded 306 (61.9%) days below the current P/E of on Consolidated basis.

Note: This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good. Days when PE is negative are not considered in the analysis
P/E range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
46-49
31 6.3% 31 6.3%
49-50
Forward PE is 49.37
28 5.7% 59 11.9%
50-51
64 13.0% 123 24.9%
51-52
53 10.7% 176 35.6%
52-56
84 17.0% 260 52.6%
56-60
Current P/E is 59.0
67 13.6% 327 66.2%
60-65
76 15.4% 403 81.6%
65-69
46 9.3% 449 90.9%
69-83
45 9.1% 494 100.0%
Total 494 494
P/E range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
47-50
Forward PE is 49.37
30 6.1% 30 6.1%
50-51
31 6.3% 61 12.3%
51-52
48 9.7% 109 22.1%
52-54
93 18.8% 202 40.9%
54-57
53 10.7% 255 51.6%
57-61
Current P/E is 60.1
73 14.8% 328 66.4%
61-65
68 13.8% 396 80.2%
65-69
50 10.1% 446 90.3%
69-83
48 9.7% 494 100.0%
Total 494 494

FAQ

  • What is the PE ratio?

    In its simplest definition, the price-to-earnings ratio (P/E ratio) represents the price an investor pays per rupee of a company's earnings.
    For example, if a company has a P/E ratio of 25, investors are willing to pay INR 25 for each rupee of the company's current earnings. This indicates that investors value the stock at 25 times its current earnings, with an expectation of future earnings growth.
    The P/E ratio fluctuates based on investor sentiment towards a company. Positive sentiment drives the stock price higher, resulting in a higher P/E ratio (investors pay more for each rupee of earnings). Conversely, negative sentiment lowers the P/E ratio (investors pay less for each rupee of earnings).
  • What is the PE buy/sell zone?

    The PE buy/sell zone is calculated based on how many days a stock has traded at its current PE level.
    To do this, we compare the current PE to the stock’s historical PE performance, to find out how often (for how many days in the past) the stock has traded at its current PE value.
    If the stock has usually traded above its current PE level (it’s at a higher PE for the majority of trading days), then the stock is cheaper than usual and in the PE buy zone.
    If the stock has usually traded below its current PE level (it’s at a lower PE for the majority of trading days), then the stock is more expensive than usual and in the PE sell zone.
  • How is the PE buy sell zone useful?

    The PE buy sell zone tells you if a stock’s current PE level is unusually high or low, and if a stock doesn’t typically trade at that level. It helps investors identify stocks that are undervalued or overvalued in terms of their typical PE trading behavior.
    Investors should keep in mind that the buy zone/sell zone is not a foolproof buy or sell signal. For example, the PE of a stock may have fallen substantially due to adverse events or negative news. Or the PE may have risen sharply after the company has won new orders, made an acquisition, announced a buyback, or some other positive event. PE Buy/Sell Zone signals should be looked at in conjunction with other information.
  • Why are the number of days different for Standalone and Consolidated data?

    This can be because of any of the 2 following reasons:
    1. Days when PE is negative are not considered in the analysis. So if only 1 of the Standalone or Consolidated PE is negative and the other is not, then the days will be different
    2. Companies have reported Consolidated data for limited period.