Amara Raja Energy & Mobility Intrinsic Value
ARE&M Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹725.28 | ₹580.22 - ₹870.34 | -20.7% | EPS: ₹60.44, Sector P/E: 12x |
| Book Value Method | asset | ₹2286.12 | ₹2057.51 - ₹2514.73 | +150.0% | Book Value/Share: ₹4105.00, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹1828.90 | ₹1646.01 - ₹2011.79 | +100.0% | Revenue/Share: ₹8037.78, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹1828.90 | ₹1646.01 - ₹2011.79 | +100.0% | EBITDA: ₹2096.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹2286.12 | ₹1828.90 - ₹2743.34 | +150.0% | CF Growth: 13.9%, Discount: 15% |
| PEG Ratio Method | growth | ₹386.82 | ₹348.14 - ₹425.50 | -57.7% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹498.03 | ₹448.23 - ₹547.83 | -45.5% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹1828.90 | ₹1646.01 - ₹2011.79 | +100.0% | ROE: 15.0%, P/E Multiple: 12x |
| Graham Defensive Method | conservative | ₹2362.71 | ₹2126.44 - ₹2598.98 | +158.4% | EPS: ₹60.44, BVPS: ₹4105.00 |
Want to compare with current market value? Check ARE&M share price latest .
Valuation Comparison Chart
ARE&M Intrinsic Value Analysis
What is the intrinsic value of ARE&M?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Amara Raja Energy & Mobility (ARE&M) is ₹1828.90 (median value). With the current market price of ₹914.45, this represents a +100.0% variance from our estimated fair value.
The valuation range spans from ₹386.82 to ₹2362.71, indicating ₹386.82 - ₹2362.71.
Is ARE&M undervalued or overvalued?
Based on our multi-method analysis, Amara Raja Energy & Mobility (ARE&M) appears to be trading below calculated value by approximately 100.0%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 9.11 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 1.38 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 15.0% | Industry Standard: 15%+ | Above 10% | Measures shareholder return efficiency |
| Operating Margin | 11.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 1.42x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
Related Pages for Amara Raja Energy & Mobility
Additional stock information and data for ARE&M
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹1,351 Cr | ₹785 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹1,266 Cr | ₹756 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹945 Cr | ₹559 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹633 Cr | ₹392 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹802 Cr | ₹494 Cr | Positive Free Cash Flow | 8/10 |