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Know your Financial Ratios & Metrics

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Varun Beverages financial data and stock performance overview.
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  1. Market Cap (₹2,06,999 Cr.):
    • Explanation: Market Capitalization is the total market value of a company’s outstanding shares. It is calculated by multiplying the current share price by the total number of outstanding shares. It provides an overview of the company’s size in the stock market.
  2. Stock P/E (95.7):
    • Explanation: The Price-to-Earnings (P/E) ratio measures a company’s current share price relative to its per-share earnings. A high P/E might indicate that the stock is overvalued, or investors expect high growth rates in the future.
  3. ROCE (28.8%):
    • Explanation: Return on Capital Employed (ROCE) indicates the efficiency and profitability of a company’s capital investments. It is calculated by dividing Earnings Before Interest and Taxes (EBIT) by Capital Employed. A higher ROCE indicates efficient use of capital.
  4. Debt to Equity (0.78):
    • Explanation: This ratio compares a company’s total liabilities to its shareholder equity. It shows how much debt is used to finance the company’s assets relative to the value of shareholders’ equity. A lower ratio is generally better, indicating less reliance on debt.
  5. Free Cash Flow (₹-803 Cr.):
    • Explanation: Free Cash Flow (FCF) represents the cash generated by a company after accounting for capital expenditures necessary to maintain or expand its asset base. A negative FCF indicates that the company is spending more on investments than it is generating from its core operations.
  6. Current Price (₹1,593):
    • Explanation: This is the current trading price of the company’s stock. It shows what investors are willing to pay per share in the market.
  7. Book Value (₹53.4):
    • Explanation: Book Value refers to the net asset value of a company. It is calculated as total assets minus total liabilities and represents the intrinsic value of the company.
  8. ROE (35.2%):
    • Explanation: Return on Equity (ROE) measures a company’s profitability by comparing net income to shareholders’ equity. A higher ROE indicates that the company is effectively generating income from its equity base.
  9. Price to Book Value (29.8):
    • Explanation: The Price-to-Book (P/B) ratio compares the market value of a company’s stock to its book value. A higher P/B ratio might indicate that the stock is overvalued relative to its assets.
  10. High / Low (₹1,674 / 781):
    • Explanation: This represents the highest and lowest prices at which the stock has traded over a certain period, usually the past year. It provides a range of the stock’s price volatility.
  11. Dividend Yield (0.16%):
    • Explanation: Dividend Yield shows how much a company pays out in dividends each year relative to its share price. It is a measure of the income generated by owning shares, expressed as a percentage of the current stock price.
  12. Face Value (₹5.00):
    • Explanation: Face Value is the nominal value of a share as stated in the company’s books. It is important for determining the stock’s book value and is often used in calculating dividends and stock splits.
  13. PEG Ratio (2.02):
    • Explanation: The Price/Earnings to Growth (PEG) ratio is used to determine a stock’s value while taking into account the company’s earnings growth. A PEG ratio of 1 is considered fair value, less than 1 is undervalued, and more than 1 might be overvalued considering the growth rate.

These metrics are crucial for evaluating the financial health, performance, and valuation of the company in the stock market.

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