Quick Snapshot of Sensex Companies: TTM EPS & PE Ratios
Overview
The Sensex is a barometer of the Indian stock market, representing the performance of the 30 largest and most liquid companies listed on the Bombay Stock Exchange (BSE).
Tracking TTM EPS (Earnings Per Share) and PE (Price-to-Earnings) Ratios provides valuable insight into the valuation and earnings potential of these companies.
The TTM PE ratio is a key metric used by investors to assess whether a stock is overvalued or undervalued based on its recent earnings performance.
TTM EPS & PE Ratios of Key Sensex Companies (As of November 2009)
| Company | Nov 09 Price (Rs) | FV (Rs) | EPS (Rs) | PE (x) |
|---|---|---|---|---|
| BHEL | 232.30 | 2.00 | 28.63 | 8.11 |
| Bajaj Auto | 1852.05 | 10.00 | 104.58 | 17.71 |
| Bharti Airtel | 275.30 | 5.00 | 16.46 | 16.72 |
| Cipla | 393.50 | 2.00 | 18.21 | 21.60 |
| Coal India | 346.25 | 10.00 | 13.01 | 26.61 |
| Dr. Reddy’s Lab | 1768.30 | 5.00 | 50.67 | 34.90 |
| GAIL India | 355.50 | 10.00 | 29.12 | 12.21 |
| HDFC | 794.00 | 2.00 | 28.96 | 27.42 |
| HDFC Bank | 639.30 | 2.00 | 24.79 | 25.79 |
| Hero MotoCorp | 1907.60 | 2.00 | 113.81 | 16.76 |
| Hindalco | 113.30 | 1.00 | 9.79 | 11.57 |
| Hindustan Unilever | 529.80 | 1.00 | 16.55 | 32.01 |
| ICICI Bank | 1059.20 | 10.00 | 64.19 | 16.50 |
| ITC | 288.50 | 1.00 | 8.59 | 33.59 |
| Infosys | 2349.15 | 5.00 | 156.50 | 15.01 |
| Jindal Steel & Power | 382.45 | 1.00 | 19.68 | 19.44 |
| Larsen & Toubro | 1620.95 | 2.00 | 79.03 | 20.51 |
| Mahindra & Mahindra | 910.30 | 5.00 | 51.53 | 17.66 |
| Maruti Suzuki | 1464.65 | 5.00 | 51.80 | 28.27 |
| NTPC | 166.95 | 10.00 | 12.57 | 13.28 |
| ONGC | 257.10 | 5.00 | 28.47 | 9.03 |
| Reliance Industries | 788.60 | 10.00 | 57.29 | 13.76 |
| SBI | 2156.35 | 10.00 | 219.40 | 9.83 |
| Sterlite Industries (I) | 100.30 | 1.00 | 3.33 | 30.08 |
| Sun Pharma Industries | 694.50 | 1.00 | 16.71 | 41.56 |
| TCS | 1325.50 | 1.00 | 62.57 | 21.18 |
| Tata Motors | 280.65 | 2.00 | 6.69 | 41.95 |
| Tata Power | 101.20 | 1.00 | 4.99 | 20.29 |
| Tata Steel | 390.55 | 10.00 | 58.58 | 6.67 |
| Wipro | 370.60 | 2.00 | 21.50 | 17.24 |
Sensex TTM PE Ratio (Overall): ~20
(Data Source: Ace Equity)
Understanding TTM EPS & PE Ratios
What Is TTM EPS?
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Earnings Per Share (EPS) refers to a company’s profitability on a per-share basis.
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TTM EPS refers to the Trailing Twelve Months EPS, which is the sum of the EPS over the last 12 months. It provides a more accurate and up-to-date measure of a company’s profitability than yearly EPS.
What Is PE Ratio?
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The Price-to-Earnings (PE) Ratio is a key valuation metric that compares a company’s stock price to its EPS.
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PE Ratio = Price per Share / EPS
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A high PE ratio generally indicates that the market has high expectations for future growth, while a low PE ratio may indicate the opposite.
Key Takeaways
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Sensex TTM PE Ratio: A PE ratio of around 20 indicates that the market is valuing the top 30 companies at 20 times their earnings over the last 12 months.
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High EPS and Low PE Ratio: Companies like BHEL (PE: 8.11) and SBI (PE: 9.83) might appear undervalued relative to their earnings.
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Growth Expectations: Companies like Sun Pharma (PE: 41.56) and Tata Motors (PE: 41.95) have relatively higher PE ratios, suggesting that the market expects significant growth.
Conclusion
Tracking EPS and PE ratios of Sensex companies is essential for investors who are looking to evaluate the valuation and earnings potential of India’s largest listed companies.
Investors should consider both the individual PE ratio of stocks and the overall market PE to make informed decisions on equity investments.
Disclaimer
The information presented here is for educational purposes only and should not be construed as investment advice. Please consult your financial advisor before making any investment decisions. Past performance is not indicative of future results.
