Asian Paints Intrinsic Value

ASIANPAINT • Consumer Goods
Current Stock Price
₹2809.40
Primary Intrinsic Value
₹1037.00
Market Cap
₹269.7K Cr
+50.4% Upside
Median Value
₹4226.72
Value Range
₹843 - ₹5619
Assessment
Trading Below Calculated Value
Safety Margin
33.5%

ASIANPAINT Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹1037.00 ₹829.60 - ₹1244.40 -63.1% EPS: ₹41.48, Sector P/E: 25x
Book Value Method asset ₹5223.70 ₹4701.33 - ₹5746.07 +85.9% Book Value/Share: ₹2089.48, P/B: 2.5x
Revenue Multiple Method revenue ₹5469.38 ₹4922.44 - ₹6016.32 +94.7% Revenue/Share: ₹3646.25, P/S: 1.5x
EBITDA Multiple Method earnings ₹5618.80 ₹5056.92 - ₹6180.68 +100.0% EBITDA: ₹6892.00Cr, EV/EBITDA: 12x
Simple DCF (5Y) dcf ₹4226.72 ₹3381.38 - ₹5072.06 +50.4% CF Growth: 4.7%, Discount: 15%
PEG Ratio Method growth ₹842.82 ₹758.54 - ₹927.10 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹842.82 ₹758.54 - ₹927.10 -70.0% Revenue Growth: 6.0%, Adj P/E: 18.5x
ROE Based Valuation profitability ₹5618.80 ₹5056.92 - ₹6180.68 +100.0% ROE: 20.3%, P/E Multiple: 16x
Graham Defensive Method conservative ₹1396.46 ₹1256.81 - ₹1536.11 -50.3% EPS: ₹41.48, BVPS: ₹2089.48
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

ASIANPAINT Intrinsic Value Analysis

What is the intrinsic value of ASIANPAINT?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Asian Paints (ASIANPAINT) is ₹4226.72 (median value). With the current market price of ₹2809.40, this represents a +50.4% variance from our estimated fair value.

The valuation range spans from ₹842.82 to ₹5618.80, indicating ₹842.82 - ₹5618.80.

Is ASIANPAINT undervalued or overvalued?

Based on our multi-method analysis, Asian Paints (ASIANPAINT) appears to be trading below calculated value by approximately 50.4%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 7.83 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.51 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 20.3% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 17.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 1.15x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹4,424 Cr ₹3,954 Cr Positive Free Cash Flow 8/10
March 2024 ₹6,104 Cr ₹4,830 Cr Positive Free Cash Flow 8/10
March 2023 ₹4,193 Cr ₹3,552 Cr Positive Free Cash Flow 8/10
March 2022 ₹987 Cr ₹829 Cr Positive Free Cash Flow 8/10
March 2021 ₹3,683 Cr ₹3,413 Cr Positive Free Cash Flow 8/10