[CALC] Relative Valuation Calculator — Sector PE Rank

Relative Valuation Calculator

Benchmark stock valuation multiples (PE, PB, EV/EBITDA, PS) against Indian sector medians to determine fair market pricing and percentile ranking.

📊 Relative Valuation Engine 🔒 PRO LOCKED
🔹 Multiples: Trailing PE, Forward PE, PB, EV/EBITDA, PS 🔹 Percentile: Relative Sector Rank (0–100th) 🔹 Benchmark: NSE 500 Sector Medians (Curated Q3 FY26)

Stock Relative Valuation Screener

Stock & Industry Classification
Per Share Fundamentals (TTM)
Enterprise & Sales Fundamentals
Valuation Percentile Position
51st Percentile Rank
🟡 FAIRLY VALUED — Closely tracking sector median PE
Trailing PE Ratio 28.5x (Sector: 28.0x)
Forward PE Ratio 24.1x (Attractive)
Price to Book (PB) 7.4x (Sector: 7.0x)
EV / EBITDA Multiple 19.8x (Sector: 20.0x)
Price to Sales (P/S) 5.3x (Sector: 5.0x)
Fair Value at Sector Median PE ₹3,780 (-1.8%)
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Access 10-year historical valuation bands, 5-peer custom comparables, analyst consensus forward ratios, and PDF research exports.

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How It Works in 4 Steps

1

Select Industry Sector

Choose the target sector (IT, Banking, FMCG, Pharma, Auto) to load quarterly median valuation ratios.

2

Input Per-Share Metrics

Enter current market price, trailing EPS (TTM), forward EPS, book value, and EBITDA per share.

3

Evaluate Multiples

Compare company valuation ratios against historical industry medians to identify premium or discount.

4

Review Percentile Rank

Examine percentile position within peer distribution and compute fair value price at sector median.

Understanding Relative Valuation: Multiples in Institutional Context

Relative Valuation values an asset by comparing its price multiples to those of peer companies in the same sector. Rather than predicting 10-year cash flows as in Discounted Cash Flow (DCF) models, relative valuation determines whether a stock is cheap or expensive compared to its industry group today.

Key Multiples in Relative Stock Valuation Explainer

1. Price to Earnings (PE) — Trailing vs Forward

Trailing PE compares price to past 12 months reported earnings. Forward PE incorporates consensus future earnings, revealing whether an apparently expensive stock is actually attractively priced due to rapid profit acceleration.

2. Enterprise Value to EBITDA (EV/EBITDA)

Unlike PE, EV/EBITDA is capital-structure neutral. It accounts for debt obligations and cash reserves, making it the preferred metric for capital-intensive industries like Infrastructure, Metals, and Telecom.

3. Percentile Ranking within Sector

A PE of 30x means very different things across industries: in FMCG it represents a discount, while in Banking it signals an extreme valuation bubble. Percentile ranking standardizes valuation across differing sectors.

📋 Regulatory References & Data Sources
  • SEBI risk management framework guidelines
  • Reserve Bank of India (RBI) financial market benchmark data
  • Income Tax Department of India rules & circulars

Disclaimer: This calculator is for educational and planning purposes only. It does not constitute financial advice. Consult a SEBI-registered investment advisor for personalised guidance. Tax rules are updated as per the latest Finance Act — verify with a qualified CA before filing.

Frequently Asked Questions — Relative Valuation

What is relative valuation in stock market investing?
Relative valuation compares a company’s valuation multiples (PE, PB, EV/EBITDA, PS) to industry sector medians or direct competitor averages to assess whether it is undervalued or overvalued.

Why is sector median preferable to sector average?
Sector averages are easily distorted by unprofitable companies with extreme P/E ratios (e.g. 500x). The median represents the true midpoint of the industry distribution.

When should EV/EBITDA be used instead of PE?
EV/EBITDA is ideal when comparing companies with different debt levels or varying depreciation policies, such as Metals, Energy, Real Estate, and Infrastructure.

Can relative valuation be applied to digital asset tokens?
Yes. In digital assets, market cap to TVL (Total Value Locked) and Fully Diluted Valuation (FDV) ratios are used. Track asset metrics on the Crypto Portfolio Tracker on Emintage.

AR
Written & Verified By

Dr.Ashok Kumar N Rao

Stock Market Educator & Author | 3,500+ Students Trained

Alternative Investments advisor and author of 'Basics of Stock Market for Beginners' and 'ಕಲಿಯಿರಿ ಶೇರ್ ಮಾರ್ಕೆಟ್'. All financial tools and content on this site are reviewed personally before publication.