Zydus Life Science Intrinsic Value

ZYDUSLIFE • Healthcare
Current Stock Price
₹927.55
Primary Intrinsic Value
₹1100.88
Market Cap
₹9368 Cr
+100.0% Upside
Median Value
₹1855.10
Value Range
₹320 - ₹2319
Assessment
Trading Below Calculated Value
Safety Margin
50.0%

ZYDUSLIFE Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹1100.88 ₹880.70 - ₹1321.06 +18.7% EPS: ₹50.04, Sector P/E: 22x
Book Value Method asset ₹2318.88 ₹2086.99 - ₹2550.77 +150.0% Book Value/Share: ₹2609.70, P/B: 2.0x
Revenue Multiple Method revenue ₹1855.10 ₹1669.59 - ₹2040.61 +100.0% Revenue/Share: ₹2434.46, P/S: 2.0x
EBITDA Multiple Method earnings ₹1855.10 ₹1669.59 - ₹2040.61 +100.0% EBITDA: ₹8020.00Cr, EV/EBITDA: 10x
Simple DCF (5Y) dcf ₹2318.88 ₹1855.10 - ₹2782.66 +150.0% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹320.26 ₹288.23 - ₹352.29 -65.5% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹773.12 ₹695.81 - ₹850.43 -16.6% Revenue Growth: 6.0%, Adj P/E: 15.5x
ROE Based Valuation profitability ₹1855.10 ₹1669.59 - ₹2040.61 +100.0% ROE: 18.8%, P/E Multiple: 14x
Graham Defensive Method conservative ₹1714.14 ₹1542.73 - ₹1885.55 +84.8% EPS: ₹50.04, BVPS: ₹2609.70
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

ZYDUSLIFE Intrinsic Value Analysis

What is the intrinsic value of ZYDUSLIFE?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Zydus Life Science (ZYDUSLIFE) is ₹1855.10 (median value). With the current market price of ₹927.55, this represents a +100.0% variance from our estimated fair value.

The valuation range spans from ₹320.26 to ₹2318.88, indicating ₹320.26 - ₹2318.88.

Is ZYDUSLIFE undervalued or overvalued?

Based on our multi-method analysis, Zydus Life Science (ZYDUSLIFE) 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 9.46 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.41 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 18.8% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 31.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.66x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹6,777 Cr ₹2,589 Cr Positive Free Cash Flow 7/10
March 2024 ₹3,196 Cr ₹2,450 Cr Positive Free Cash Flow 8/10
March 2023 ₹2,689 Cr ₹2,689 Cr Positive Free Cash Flow 8/10
March 2022 ₹2,105 Cr ₹1,596 Cr Positive Free Cash Flow 8/10
March 2021 ₹3,294 Cr ₹2,876 Cr Positive Free Cash Flow 8/10