Alkem Laboratories Intrinsic Value
ALKEM Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹5631.12 | ₹4504.90 - ₹6757.34 | +1.6% | EPS: ₹255.96, Sector P/E: 22x |
| Book Value Method | asset | ₹10361.67 | ₹9325.50 - ₹11397.84 | +86.9% | Book Value/Share: ₹5180.83, P/B: 2.0x |
| Revenue Multiple Method | revenue | ₹11089.00 | ₹9980.10 - ₹12197.90 | +100.0% | Revenue/Share: ₹6841.67, P/S: 2.0x |
| EBITDA Multiple Method | earnings | ₹11089.00 | ₹9980.10 - ₹12197.90 | +100.0% | EBITDA: ₹4100.00Cr, EV/EBITDA: 10x |
| Simple DCF (5Y) | dcf | ₹9282.55 | ₹7426.04 - ₹11139.06 | +67.4% | CF Growth: 10.9%, Discount: 15% |
| PEG Ratio Method | growth | ₹1663.35 | ₹1497.01 - ₹1829.68 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹3954.58 | ₹3559.12 - ₹4350.04 | -28.7% | Revenue Growth: 6.0%, Adj P/E: 15.5x |
| ROE Based Valuation | profitability | ₹11089.00 | ₹9980.10 - ₹12197.90 | +100.0% | ROE: 25.1%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹5462.32 | ₹4916.09 - ₹6008.55 | -1.5% | EPS: ₹255.96, BVPS: ₹5180.83 |
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Valuation Comparison Chart
ALKEM Intrinsic Value Analysis
What is the intrinsic value of ALKEM?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Alkem Laboratories (ALKEM) is ₹9282.55 (median value). With the current market price of ₹5544.50, this represents a +67.4% variance from our estimated fair value.
The valuation range spans from ₹1663.35 to ₹11089.00, indicating ₹1663.35 - ₹11089.00.
Is ALKEM undervalued or overvalued?
Based on our multi-method analysis, Alkem Laboratories (ALKEM) appears to be trading below calculated value by approximately 67.4%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 8.32 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 25.1% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 23.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.93x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for Alkem Laboratories
Additional stock information and data for ALKEM
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹1,913 Cr | ₹1,269 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹1,948 Cr | ₹1,443 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹1,683 Cr | ₹1,683 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹1,111 Cr | ₹395 Cr | Positive Free Cash Flow | 7/10 |
| March 2021 | ₹1,265 Cr | ₹768 Cr | Positive Free Cash Flow | 8/10 |