One of the effective methods for assessing whether a stock is undervalued or overvalued is by analysing key metrics such as the Price-to-Earnings (P/E) ratio and the industry P/E average. The P/E ratio or Price-to-Earnings ratio compares the current share price to the earnings per share (EPS) of a company, serving as a widely recognised indicator for determining the value of a stock.
When a company’s P/E ratio is significantly higher than the industry average, it may indicate that the stock is overvalued, as investors are paying a premium for its earnings or betting on its future growth.
Here’s a look at the top five Nifty 50 stocks with the highest Price-to-Earnings (P/E) ratios:
Titan Company Limited
With a market cap of Rs. xx crores, the stock moved up by around xx percent on BSE to close in the green at Rs. xx on Monday. The shares of Titan Company have a P/E ratio of 86.6, compared to the industry’s P/E ratio of 28.6.
On the financial front, the company’s revenue from operations improved by around 24 percent YoY to Rs. 16,523 crores, along with an increase in the net profit by nearly 53 percent YoY to Rs. 1,091 crores in Q1 FY26. Titan Company Limited is primarily involved in the business of manufacturing and sale of watches, jewellery, eyewear, and other accessories and products.
HDFC Life Insurance Company Limited
With a market cap of Rs. 1.63 lakh crores, the stock moved up by around 1 percent on BSE to close in the green at Rs. 759.8 on Friday. The shares of HDFC Life Insurance Company have a P/E ratio of 87.1, compared to the industry’s P/E ratio of 72.9.
On the financial front, the company’s revenue from operations improved by around 9 percent YoY to Rs. 29,463 crores, along with an increase in the net profit by nearly 14 percent YoY to Rs. 548 crores in Q1 FY26.
HDFC Life Insurance Company Limited is a leading long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity, and health. It offers a range of individual and group insurance solutions, including participating, non-participating, and unit-linked lines of business.
Trent Limited
With a market cap of Rs. 1.96 lakh crores, the stock closed in the red at Rs. 5,521 on Friday. The shares of Trent have a P/E ratio of 124, compared to the industry’s P/E ratio of 45.4.
On the financial front, the company’s revenue from operations improved by around 19 percent YoY to Rs. 4,883 crores, along with an increase in the net profit by nearly 9 percent YoY to Rs. 425 crores in Q1 FY26.
Trent Limited, a part of the Tata Group, is engaged in retailing/trading of apparel, footwear, accessories, toys, games, etc., operating through “Westside”, ‘Zudio’, “Utsa”, “Misbu/Xcite” and “Samoh” retail formats.
Jio Financial Services Limited
With a market cap of Rs. 1.96 lakh crores, the stock closed in the green at Rs. 309.35 on Friday. The shares of Jio Financial have a P/E ratio of 123, compared to the industry’s P/E ratio of 32.1.
On the financial front, the company’s revenue from operations improved by around 46 percent YoY to Rs. 612 crores, along with an increase in the net profit by nearly 4 percent YoY to Rs. 325 crores in Q1 FY26.
Jio Financial Services Limited, formerly known as Reliance Strategic Investments Limited, is a registered NBFC – Systemically Important Non-Deposit-taking company. It is engaged in the business of investing & financing, insurance broking, payment bank, payment aggregator and payment gateway services.
Eternal Limited
With a market cap of Rs. 3.17 lakh crores, the stock moved up by around 1 percent on BSE to close in the green at Rs. 329.2 on Friday. The shares of Eternal have a P/E ratio of 1,062, compared to the industry’s P/E ratio of 28.9.
On the financial front, the company’s revenue from operations improved by around 70 percent YoY to Rs. 7,167 crores, but a decline in the net profit by nearly 90 percent YoY to Rs. 25 crores in Q1 FY26.
Eternal Limited provide restaurant partners with industry-specific marketing tools to acquire customers, providing delivery partners with transparent and flexible earning opportunities.
The company’s technology platform connects customers, restaurant partners and delivery partners, and other intermediaries such as call centre operators serving their multiple needs. Customers use the platform to search/discover restaurants, read/write reviews, upload photos, order food, book tables, and make payments while dining out.
Written by Shivani Singh
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