 "Hindustan Unilever, HUL")
Investors on Dalal Street, who are increasingly turning risk averse, have pushed Hindustan Unilever’s (HUL’s) valuation premium to a record high. The FMCG company’s price-to-earnings (P/E) multiple is now nearly twice that of its industry peers — the highest in 17 years.
At its current market capitalisation of Rs 5.18 trillion, HUL is now valued at nearly 77x its trailing 12-month net profit, against the industry’s average P/E of 43x. At around 3,300 basis points (bps), its valuation premium over the industry is nearly 6x its historical average of around 570 bps. One basis point is one-hundredth of a
At its current market capitalisation of Rs 5.18 trillion, HUL is now valued at nearly 77x its trailing 12-month net profit, against the industry’s average P/E of 43x. At around 3,300 basis points (bps), its valuation premium over the industry is nearly 6x its historical average of around 570 bps. One basis point is one-hundredth of a
