Ambuja Cements Intrinsic Value
AMBUJACEM Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹343.20 | ₹274.56 - ₹411.84 | -21.0% | EPS: ₹28.60, Sector P/E: 12x |
| Book Value Method | asset | ₹1085.50 | ₹976.95 - ₹1194.05 | +150.0% | Book Value/Share: ₹1294.34, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹612.48 | ₹551.23 - ₹673.73 | +41.1% | Revenue/Share: ₹765.60, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹868.40 | ₹781.56 - ₹955.24 | +100.0% | EBITDA: ₹7200.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹421.25 | ₹337.00 - ₹505.50 | -3.0% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹183.04 | ₹164.74 - ₹201.34 | -57.8% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹235.66 | ₹212.09 - ₹259.23 | -45.7% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹868.40 | ₹781.56 - ₹955.24 | +100.0% | ROE: 14.4%, P/E Multiple: 12x |
| Graham Defensive Method | conservative | ₹912.64 | ₹821.38 - ₹1003.90 | +110.2% | EPS: ₹28.60, BVPS: ₹1294.34 |
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Valuation Comparison Chart
AMBUJACEM Intrinsic Value Analysis
What is the intrinsic value of AMBUJACEM?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Ambuja Cements (AMBUJACEM) is ₹612.48 (median value). With the current market price of ₹434.20, this represents a +41.1% variance from our estimated fair value.
The valuation range spans from ₹183.04 to ₹1085.50, indicating ₹183.04 - ₹1085.50.
Is AMBUJACEM undervalued or overvalued?
Based on our multi-method analysis, Ambuja Cements (AMBUJACEM) appears to be trading below calculated value by approximately 41.1%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 5.99 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 14.4% | Industry Standard: 15%+ | Above 10% | Measures shareholder return efficiency |
| Operating Margin | 17.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.47x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
Related Pages for Ambuja Cements
Additional stock information and data for AMBUJACEM
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹2,237 Cr | ₹-1,528 Cr | Positive Operating Cash Flow | 6/10 |
| March 2024 | ₹5,646 Cr | ₹1,176 Cr | Positive Free Cash Flow | 7/10 |
| March 2023 | ₹735 Cr | ₹-6,506 Cr | Positive Operating Cash Flow | 6/10 |
| March 2021 | ₹5,309 Cr | ₹4,306 Cr | Positive Free Cash Flow | 8/10 |
| March 2020 | ₹4,832 Cr | ₹4,174 Cr | Positive Free Cash Flow | 8/10 |