1. MARKETS
  2. SECTOR : PHARMACEUTICALS & BIOTECHNOLOGY
  3. INDUSTRY : PHARMACEUTICALS
  4. TORRENT PHARMACEUTICALS LTD.
Torrent Pharmaceuticals Ltd. NSE: TORNTPHARM | BSE: 500420
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4033.30 93.00 (2.36%)
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NSE 19 Jan, 2026 9:07 AM (IST)

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Analyze undervaluation/ overvaluation of Torrent Pharma with current and 1 Year Forward PE

INSIGHT
Torrent Pharma is overvalued at current PE, but fairly valued on future earnings estimates
Right Now : Current PE vs 5 year Average PE
Overvalued
Fair price

Based on 5Yr Average PE

3617.1
Upside

Current PE versus 5Yr Average PE

-10.3 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Fairly Valued
Fair price

Based on 1Yr Forward EPS

4145.6
Upside

5 Yr Average PE & 1Yr Forward EPS

2.8 %
Info: The Torrent Pharma's current PE is 63.79 ,while its 5 year PE average is 57.2. Its forward PE based on analyst estimates is 55.7
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 Torrent Pharma with historical PE and PBV ratios

from 24 Jan, 2024 to 23 Jan, 2026

Standalone PE

Neutral zone

49.9% into PE buy sell zone

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

Out of 489 days, Torrent Pharma traded 244 (49.9%) days below the current PE of on Standalone basis.

Consolidated PE

Strong Sell Zone

85.9% into PE buy sell zone

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

Out of 489 days, Torrent Pharma traded 420 (85.9%) 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
85.9%

Strong Sell Zone

% Days traded below current PE

63.8
 

Current PE

60.4
 

Average PE

60.2
 

Median PE

4145.6
 

Forward 1Y Price

55.7
 

Forward PE

72.5
 

Forward EPS

PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
53-56
Forward PE is 55.65
33 6.7% 33 6.7%
56-57
 27 5.5% 60 12.3%
57-59
 90 18.4% 150 30.7%
59-60
 80 16.4% 230 47.0%
60-61
 103 21.1% 333 68.1%
61-63
 72 14.7% 405 82.8%
63-66
Current PE is 63.8
49 10.0% 454 92.8%
66-70
 35 7.2% 489 100.0%
Total 489 489
49.9%

Neutral zone

% Days traded below current PE

64.8
 

Current PE

66.8
 

Average PE

64.9
 

Median PE

4145.6
 

Forward 1Y Price

55.7
 

Forward PE

72.5
 

Forward EPS

PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
54-57
Forward PE is 55.65
29 5.9% 29 5.9%
57-58
 19 3.9% 48 9.8%
58-61
 91 18.6% 139 28.4%
61-62
 60 12.3% 199 40.7%
62-65
Current PE is 64.8
46 9.4% 245 50.1%
65-71
 77 15.7% 322 65.8%
71-76
 84 17.2% 406 83.0%
76-78
 58 11.9% 464 94.9%
78-81
 25 5.1% 489 100.0%
Total 489 489

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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