Is It Cheap? · Advanced · Pro filter
RoE-justified P/B upside: what it means and how to read it
A fair P/B worked out from the company's return on equity (higher returns deserve a higher P/B), compared with today's P/B. Positive means room to rise.
What is RoE-justified P/B upside?
A fair P/B worked out from the company's return on equity (higher returns deserve a higher P/B), compared with today's P/B. Positive means room to rise.
A worked example
A bank earning 18% on equity might deserve 2.5 times book. If it trades at 2.0, the upside is +25%. One earning 8% may deserve less than 1.
Why does RoE-justified P/B upside matter?
Ties the price to how well the company uses shareholders' money.
How do you read RoE-justified P/B upside?
Positive is cheaper for the returns it earns.
Higher is usually better.
What is a typical RoE-justified P/B upside in India today?
The median across the 4411 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.
By company size
Median
Large Cap · 98 companies-73.8%
Mid Cap · 144 companies-77.9%
Small Cap · 4169 companies-84.2%
By industry
Median, largest industries first
Private Sector Bank · 19-42.0%
Pharmaceuticals · 178-78.1%
Computers - Software & Consulting · 57-66.8%
Refineries & Marketing · 831.8%
Public Sector Bank · 1229.8%
Non Banking Financial Company (NBFC) · 66-65.1%
Power Generation · 22-98.5%
Heavy Electrical Equipment · 38-79.3%
Auto Components & Equipments · 108-68.6%
Cement & Cement Products · 31-92.1%
Compare a company with its own industry before the whole market. Every industry, and each company's rank within it, is in the screener.