Reliance Communications Intrinsic Value
Reliance Communications intrinsic value. Reliance Communications (RCOM) median intrinsic value is ₹1.75 from 2 valuation models (range ₹2–₹2), vs current price ₹0.86 — +103.5% upside (Trading Below Calculated Value), margin of safety 50.9%. Read RCOM ex-dividend dates for the complete payout history and dividend yield track record.
RCOM Valuation Methods Summary — DCF, Graham Number & P/E
Reliance Communications intrinsic value across 2 models vs current price ₹0.86 — upside/downside and value range per method. For current market price and key ratios, visit RCOM stock price BSE.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| Revenue Multiple Method | revenue | ₹1.72 | ₹1.55 - ₹1.89 | +100.0% | Revenue/Share: ₹2.63, P/S: 0.8x |
| Simple DCF (5Y) | dcf | ₹1.75 | ₹1.40 - ₹2.10 | +103.5% | CF Growth: 5.0%, Discount: 15% |
RCOM Intrinsic Value vs Market Price — All Valuation Models
Reliance Communications fair value range ₹2–₹2 vs current market price ₹0.86 across 2 valuation models. Compare with RCOM fair value to assess whether the stock is under or overvalued.
RCOM Intrinsic Value Analysis — Undervalued or Overvalued?
Reliance Communications median intrinsic value ₹1.75, current price ₹0.86 — Trading Below Calculated Value by 103.5%, margin of safety 50.9%.
What is the intrinsic value of RCOM?
Based on our comprehensive analysis using 2 different valuation methods, the estimated intrinsic value of Reliance Communications (RCOM) is ₹1.75 (median value). With the current market price of ₹0.86, this represents a +103.5% variance from our estimated fair value.
The valuation range spans from ₹1.72 to ₹1.75, indicating ₹1.72 - ₹1.75.
Is RCOM undervalued or overvalued?
Based on our multi-method analysis, Reliance Communications (RCOM) appears to be trading below calculated value by approximately 103.5%.
RCOM Financial Health — Key Ratios vs Industry Benchmarks
Reliance Communications financial ratios — ROE, debt-to-equity, profit margins and liquidity vs industry benchmarks and their impact on intrinsic value.
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 43.41 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 12.1% | Industry Standard: 15%+ | Above 10% | Measures shareholder return efficiency |
| Operating Margin | -3793.0% | Industry Standard: 20%+ | Below 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.01x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
RCOM Cash Flow Quality — Operating & Free Cash Flow
Reliance Communications operating cash flow, free cash flow, quality rating and sustainability score by period — key inputs to DCF intrinsic value calculation.
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹26 Cr | ₹26 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹-40 Cr | ₹-40 Cr | Negative Cash Flow | 3/10 |
| March 2023 | ₹-64 Cr | ₹-152 Cr | Negative Cash Flow | 3/10 |
| March 2022 | ₹119 Cr | ₹-30 Cr | Positive Operating Cash Flow | 6/10 |
| March 2021 | ₹328 Cr | ₹325 Cr | Positive Free Cash Flow | 8/10 |