GHCL Intrinsic Value

GHCL • Chemicals
Current Stock Price
₹559.45
Primary Intrinsic Value
₹535.68
Market Cap
₹5371 Cr
-24.6% Downside
Median Value
₹421.94
Value Range
₹246 - ₹604
Assessment
Trading Above Calculated Value
Safety Margin
-32.6%

GHCL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹535.68 ₹428.54 - ₹642.82 -4.2% EPS: ₹44.64, Sector P/E: 12x
Book Value Method asset ₹363.44 ₹327.10 - ₹399.78 -35.0% Book Value/Share: ₹363.44, P/B: 1.0x
Revenue Multiple Method revenue ₹246.00 ₹221.40 - ₹270.60 -56.0% Revenue/Share: ₹307.50, P/S: 0.8x
EBITDA Multiple Method earnings ₹421.94 ₹379.75 - ₹464.13 -24.6% EBITDA: ₹696.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹520.27 ₹416.22 - ₹624.32 -7.0% CF Growth: 0.7%, Discount: 15%
PEG Ratio Method growth ₹285.70 ₹257.13 - ₹314.27 -48.9% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹367.83 ₹331.05 - ₹404.61 -34.3% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹535.00 ₹481.50 - ₹588.50 -4.4% ROE: 12.3%, P/E Multiple: 12x
Graham Defensive Method conservative ₹604.18 ₹543.76 - ₹664.60 +8.0% EPS: ₹44.64, BVPS: ₹363.44
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check GHCL share price latest .

Valuation Comparison Chart

GHCL Intrinsic Value Analysis

What is the intrinsic value of GHCL?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of GHCL (GHCL) is ₹421.94 (median value). With the current market price of ₹559.45, this represents a -24.6% variance from our estimated fair value.

The valuation range spans from ₹246.00 to ₹604.18, indicating ₹246.00 - ₹604.18.

Is GHCL undervalued or overvalued?

Based on our multi-method analysis, GHCL (GHCL) appears to be trading above calculated value by approximately 24.6%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 5.96 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.20 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 12.3% Industry Standard: 15%+ Above 10% Measures shareholder return efficiency
Operating Margin 22.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.71x 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 ₹638 Cr ₹459 Cr Positive Free Cash Flow 8/10
March 2024 ₹797 Cr ₹530 Cr Positive Free Cash Flow 8/10
March 2023 ₹856 Cr ₹652 Cr Positive Free Cash Flow 8/10
March 2022 ₹643 Cr ₹475 Cr Positive Free Cash Flow 8/10
March 2021 ₹621 Cr ₹567 Cr Positive Free Cash Flow 8/10