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Average P/E and EPS Growth Rate of Hindustan Unilever For The Last 10 Years

In this article, we will be calculating the average Price-to-Earning (P/E) ratio and the average Earning Per Share (EPS) Growth Rate of Hindustan Unilever (NSE: HINDUNILVR) for the last ten years starting from March 2011.

First, we will make a list of the Stock Price, Annual EPS, P/E, and the EPS Growth Rate of Hindustan Unilever.

Hindustan Unilever Stock Price, Annual EPS, P/E, EPS Growth Rate

DateStock PriceAnnual EPSP/EEPS Growth Rate
31st March 2011Rs. 284.60/-Rs. 10.63/-26.77
30th March 2012Rs. 409.90/-Rs. 12.91/-31.7521.44%
28th March 2013Rs. 466.10/-Rs. 17.71/-26.3137.18%
31st March 2014Rs. 603.65/-Rs. 18.24/-33.0902.99%
31st March 2015Rs. 872.90/-Rs. 20.17/-43.2710.58%
31st March 2016Rs. 869.50/-Rs. 19.18/-45.33(04.90%)
31st March 2017Rs. 909.75/-Rs. 20.68/-43.9907.82%
28th March 2018Rs. 1,335.90/-Rs. 24.09/-55.4516.48%
29th March 2019Rs. 1,707.80/-Rs. 27.97/-61.0516.10%
31st March 2020Rs. 2,298.15/-Rs. 31.17/-73.7211.44%
31st March 2021Rs. 2,430.80/-Rs. 34.03/-71.4309.17%

Stock Price data is based on Closing Price provided by BSE. EPS data is provided by Screener.

How To Calculate The Price-to-Earning Ratio (P/E) Of a Stock?

To calculate a stock’s Price to Earning ratio (P/E), you need to divide the company’s stock price by the Earning Per Share (EPS).

In our case, we divided the stock price of Hindustan Unilever by the company’s EPS.

For example –

To find the P/E Ratio of Hindustan Unilever on 31st March 2017, we divided the stock price of Hindustan Unilever on that date by the annual EPS.

That is;

Rs. 909.75/- ÷ Rs. 20.68/- = 43.99

P/E Ratio is the premium investors are willing to pay to earn the annual EPS.

In the case of Hindustan Unilever, on 31st March 2017, investors were willing to pay a premium of 43.99 (or, simply 44) times the EPS to earn annually Rs. 20.68/- per share.

How To Calculate The EPS Growth Rate Of a Stock?

Step By Step Method To Calculate The EPS Growth Rate Of a Stock

First, you must subtract the stock’s current year’s EPS from the previous year’s.

Then, you need to divide the value you derived from subtracting the two EPS by the previous year’s EPS.

Finally, multiply the quotient of the division by 100 to derive the EPS Growth Rate Percentage.

For example –

In our case of Hindustan Unilever, on 31st March 2011, the company’s annual EPS was Rs. 10.63/-. That rose to Rs. 12.91/- on 30th March 2012.

To calculate the EPS Growth Rate of Hindustan Unilever for the year 2012, we first subtracted the company’s EPS for the year 2012 from the EPS of the year 2011.

That is;

Rs. 12.91 – Rs. 10.63 = Rs. 2.28/-

Then, we divided that value by the company’s annual EPS for the year 2011.

That is;

Rs. 2.28 ÷ Rs. 10.63 = 0.2144

Finally, we multiplied 0.2144 by 100 to derive the EPS Growth Rate Percentage of Hindustan Unilever for 2012, which came out as 21.44%.

Now, let us focus on finding the average P/E ratio and EPS Growth Rate of Hindustan Unilever.

What Is The Average P/E Ratio Of Hindustan Unilever?

Here, we will calculate the average Price to Earning (P/E) ratio of Hindustan Unilever for the last ten years, starting from 2012.

To calculate the average P/E ratio of Hindustan Unilever, first, we need to add the company’s P/E ratio for every year, starting from 2012.

That is;

31.75 + 26.31 + 33.09 + 43.27 + 45.33 + 43.99 + 55.45 + 61.05 + 73.72 + 71.43 = 485.39

Now, we simply need to divide the value of the addition by 10.

That is;

485.39 ÷ 10 = 48.539

The average Price to Earning (P/E) ratio of Hindustan Unilever for the last ten years, starting from 2012, is 48.539.

A better and more accurate time frame for the calculating average P/E ratio would be the last 5 years.

What Is The Average P/E Ratio Of Hindustan Unilever For The Last 5 Years?

Let us first remake the above chart starting from 2018 to 2022.

DateStock PriceAnnual EPSP/EEPS Growth Rate
28th March 2018Rs. 1,335.90/-Rs. 24.09/-55.4516.48%
29th March 2019Rs. 1,707.80/-Rs. 27.97/-61.0516.10%
31st March 2020Rs. 2,298.15/-Rs. 31.17/-73.7211.44%
31st March 2021Rs. 2,430.80/-Rs. 34.03/-71.4309.17%
31st March 2022Rs. 2,048.85/-Rs. 37.79/-54.2111.04%

To calculate the average P/E ratio of Hindustan Unilever for the last five years, we need to add the value of the P/E ratios for the last 5 years and divide them by 5.

That is;

55.45 + 61.05 + 73.72 + 71.43 + 54.21 = 315.86

Finally,

315.86 ÷ 5 = 63.17

The average P/E ratio of Hindustan Unilever for the last five years is 63.17.

Now, let us find out the average EPS Growth Rate Percentage of Hindustan Unilever.

What Is The Average EPS Growth Rate Of Hindustan Unilever?

We will be calculating the average EPS Growth Rate of Hindustan Unilever the same way we calculated the company’s average P/E ratio above.

First, we will add each year’s annual EPS of the company, starting from 2012.

That is;

21.44 + 37.18 + 02.99 + (- 04.90) + 07.82 + 16.48 + 16.10 + 11.44 + 09.17 = 117.72

Now, we need to divide the value derived from the above addition by 10.

That is;

117.72 ÷ 10 = 11.772%

The average EPS Growth Rate of Hindustan Unilever for the last ten years, starting from 2012, is 11.77%.

In this article, we have forecasted the stock price of Hindustan Unilever for the upcoming years using all the data we calculated above. Do give it a look.

Disclaimer: The views, investment tips, presumptions, and calculations expressed here or on Moneypremier.net are not of the website or its management. And the author of this article is not responsible for any kind of loss arising from decisions made based on this article. This article is for Educational Purposes only. Moneypremier.net advises users to check with certified experts before making any financial decisions.

What do you think?

Written by Sayantan Chakraborty

I have been investing in the Indian stock market for more than 11 years. I have invested in the Indian Stock Market via Mutual Funds, ETFs, and Direct Stocks. I have seen multiple markets cycle, and from my experience, all I can say is persistence is the key to success in the Indian Stock Market as an investor.
I also love reading financial books and company results and reports.
You can ask me anything on Twitter by clicking on the button below.

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