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  2. SECTOR : AUTOMOBILES & AUTO COMPONENTS
  3. INDUSTRY : AUTO TYRES & RUBBER PRODUCTS
  4. MRF LTD.
MRF Ltd. NSE: MRF | BSE: 500290
Strong Performer, Getting Expensive
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148100.00 -1555.00 (-1.04%)
New 52W High in past week
5,039
NSE+BSE Volume

NSE 05 Sep, 2025 3:31 PM (IST)

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

INSIGHT
MRF 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

171485.5
Upside

Current PE versus 5Yr Average PE

15.79 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Undervalued
Fair price

Based on 1Yr Forward EPS

210824.9
Upside

5 Yr Average PE & 1Yr Forward EPS

42.35 %
Info: The MRF Ltd.'s current PE is 34.92 ,while its 5 year PE average is 40.4. Its forward PE based on analyst estimates is 28.4
Note: The forward PE 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.

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

from 08 Sep, 2023 to 07 Sep, 2025

Standalone PE

Strong Sell Zone

96.6% into PE buy sell zone

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

Out of 495 days, MRF Ltd. traded 478 (96.6%) days below the current PE of on Standalone basis.

Consolidated PE

Strong Sell Zone

89.1% into PE buy sell zone

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

Out of 495 days, MRF Ltd. traded 441 (89.1%) days below the current PE 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
89.1%

Strong Sell Zone

% Days traded below current PE

34.9
 

Current PE

29.6
 

Average PE

28.3
 

Median PE

210824.9
 

Forward 1Y Price

28.4
 

Forward PE

5214.2
 

Forward EPS

PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
24-26
 72 14.5% 72 14.5%
26-27
 67 13.5% 139 28.1%
27-28
 91 18.4% 230 46.5%
28-29
Forward PE is 28.4
58 11.7% 288 58.2%
29-31
 46 9.3% 334 67.5%
31-33
 64 12.9% 398 80.4%
33-36
Current PE is 34.9
57 11.5% 455 91.9%
36-39
 40 8.1% 495 100.0%
Total 495 495
96.6%

Strong Sell Zone

% Days traded below current PE

36.0
 

Current PE

29.7
 

Average PE

28.7
 

Median PE

210824.9
 

Forward 1Y Price

28.4
 

Forward PE

5214.2
 

Forward EPS

PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
24-26
 33 6.7% 33 6.7%
26-27
 94 19.0% 127 25.7%
27-28
 74 14.9% 201 40.6%
28-29
Forward PE is 28.4
65 13.1% 266 53.7%
29-31
 65 13.1% 331 66.9%
31-34
 80 16.2% 411 83.0%
34-36
 65 13.1% 476 96.2%
36-38
Current PE is 36.0
19 3.8% 495 100.0%
Total 495 495

FAQ

  • What is the PE ratio?

    In its simplest definition, the price-to-earnings ratio (PE ratio) represents the price an investor pays per rupee of a company's earnings.
    For example, if a company has a PE 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 PE ratio fluctuates based on investor sentiment towards a company. Positive sentiment drives the stock price higher, resulting in a higher PE ratio (investors pay more for each rupee of earnings). Conversely, negative sentiment lowers the PE 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.
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