Pidilite Industries Current Valuation vs. Debt to Equity Fundamental Analysis
Pidilite Industries Limited is rated below average in debt to equity category among related companies. It is rated top company in current valuation category among related companies reporting about 203,351,851,851 of Current Valuation per Debt to Equity. Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
|Debt to Equity ( % )|
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging barrowing against the capital invested by the owners.Enterprise Value is a firm valuation proxy that approximates current market value of a company. It is typically used to determine takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that company has on its balance sheet. When takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.Pidilite Industries Limited is rated top company in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Specialty Chemicals industry is at this time estimated at about 817.76 Billion. Pidilite Industries totals roughly 549.05 Billion in current valuation claiming about 67% of equities listed under Specialty Chemicals industry.
Pidilite Industries is currently under evaluation in revenue category among related companies.