Is Reliance share overvalued?
Reliance Industries Ltd. has a PEG ratio of 3.43, indicating that its stock price is overvalued relative to its expected earnings growth. The company's sustainable growth rate is 0.0, suggesting that it may struggle to maintain its current level of profitability.
The intrinsic value of one RELIANCE stock under the Base Case scenario is 2 747.9 INR. Compared to the current market price of 2 627.25 INR, Reliance Industries Ltd is Undervalued by 4%.
Reliance Industries Ltd. quote is equal to 2527.600 INR at 2023-07-29. Based on our forecasts, a long-term increase is expected, the "Reliance Industries Ltd" stock price prognosis for 2028-07-21 is 3980.792 INR. With a 5-year investment, the revenue is expected to be around +57.49%.
Reliance Industries's p/e ratio for fiscal years ending March 2019 to 2023 averaged 24.2x. Reliance Industries's operated at median p/e ratio of 23.3x from fiscal years ending March 2019 to 2023. Looking back at the last 5 years, Reliance Industries's p/e ratio peaked in March 2022 at 31.0x.
Is Reliance Industries Ltd undervalued or overvalued? The key valuation ratios of Reliance Industries Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.
Overvalued stocks may be a product of market hype, speculation, or irrational exuberance, and the current market price may not be sustainable in the long run. If investors buy an overvalued stock at a high price, they may experience losses if the stock price eventually drops to reflect its true intrinsic value.
Stock Price Forecast
The 1 analysts offering 12-month price forecasts for Reliance Global Group Inc have a median target of 7.00, with a high estimate of 7.00 and a low estimate of 7.00. The median estimate represents a +67.46% increase from the last price of 4.18.
According to long-term projections, Reliance Power Share Price Target 2023 will be between 17 and 19 rupees, 2025 will be between 32 and 35 rupees, and 2030 will be about 90 rupees.
Reliance Power Share Price Future Prediction 2028
In 2028, Reliance Power's share price is predicted to reach an average price of ₹370. The stock price could vary between ₹360 and ₹380, reflecting the company's continued growth and the positive market sentiment.
Investors and analysts consider stocks which have a P/E ratio of 50 or above to be an overvalued share, especially in comparison to a stock which has a ratio at par with or below 10. As it allows investors to determine that its share prices are considerably higher than what a company can afford to pay as dividends.
What is the perfect PE ratio?
A “good” P/E ratio isn't necessarily a high ratio or a low ratio on its own. The market average P/E ratio currently ranges from 20-25, so a higher PE above that could be considered bad, while a lower PE ratio could be considered better. However, the long answer is more nuanced than that.
To give you some sense of what average for the market is, though, many value investors would refer to 20 to 25 as the average P/E ratio range. And again, like golf, the lower the P/E ratio a company has, the better an investment the metric is saying it is.
The intrinsic value of one RPOWER stock under the Base Case scenario is 37.18 INR. Compared to the current market price of 16.05 INR, Reliance Power Ltd is Undervalued by 57%.
Future criteria checks 1/6. Reliance Industries is forecasted to grow earnings and revenue by 14.2% and 7.9% per annum respectively. EPS is expected to grow by 14.8%. Return on equity is forecast to be 9.1% in 3 years.
Reliance Industries Ltd Dividend related ratios:
Current Dividend Yield: 0.28% Annual dividend payment: ₹8.
In fact, many investors, strategists and analysts consider a PEG Ratio lower than 1.0 the best. That's because a ratio lower than 1 suggests that the company is relatively undervalued.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | EKI Energy | 455.75 |
| 2. | TRF | 192.10 |
| 3. | Coal India | 227.10 |
| 4. | Cons. Finvest | 133.00 |
| Company | CMP (Rs) | P/E (x) |
|---|---|---|
| TATA MOTORS | 625.8 | 88.3 |
| NESTLE | 22,975.1 | 86.9 |
| APOLLO HOSPITALS | 5,203.0 | 84.3 |
| ASIAN PAINTS | 3,516.9 | 82.2 |
Based on the latest S&P 500 monthly data, the market is overvalued somewhere in the range of 72% to 127%, depending on the indicator, up from last month's 65% to 117%. We've plotted the S&P regression data as an area chart type rather than a line to make the comparisons a bit easier to read.
The intrinsic value of one AMZN stock under the Base Case scenario is 73.97 USD. Compared to the current market price of 132.21 USD, Amazon.com Inc is Overvalued by 44%.
Is Google stock Overvalued?
Summary. GOOG's valuation metrics are weak at its current price due to a overvalued PEG ratio despite strong growth. GOOG's PE and PEG are worse than the market average resulting in a below average valuation score.
The intrinsic value of one RPOWER stock under the Base Case scenario is 37.18 INR. Compared to the current market price of 16.05 INR, Reliance Power Ltd is Undervalued by 57%.
The primary reasons behind this decline were lower crude oil prices and reduced margins on fuels such as diesel. Analysts had anticipated a potential decline in Reliance shares today, considering the weak Q1 results that fell below market estimates.
