HCL Technologies Intrinsic Value

HCLTECH • Information Technology
Current Stock Price
₹1647.70
Primary Intrinsic Value
₹750.24
Market Cap
₹894.7K Cr
-18.5% Downside
Median Value
₹1343.49
Value Range
₹494 - ₹3548
Assessment
Trading Above Median Value
Safety Margin
-22.6%

HCLTECH Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹750.24 ₹600.19 - ₹900.29 -54.5% EPS: ₹62.52, Sector P/E: 12x
Book Value Method asset ₹1283.11 ₹1154.80 - ₹1411.42 -22.1% Book Value/Share: ₹1283.11, P/B: 1.0x
Revenue Multiple Method revenue ₹1906.86 ₹1716.17 - ₹2097.55 +15.7% Revenue/Share: ₹2383.57, P/S: 0.8x
EBITDA Multiple Method earnings ₹3053.44 ₹2748.10 - ₹3358.78 +85.3% EBITDA: ₹27840.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹3548.11 ₹2838.49 - ₹4257.73 +115.3% CF Growth: 3.2%, Discount: 15%
PEG Ratio Method growth ₹494.31 ₹444.88 - ₹543.74 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹515.16 ₹463.64 - ₹566.68 -68.7% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹3295.40 ₹2965.86 - ₹3624.94 +100.0% ROE: 24.3%, P/E Multiple: 16x
Graham Defensive Method conservative ₹1343.49 ₹1209.14 - ₹1477.84 -18.5% EPS: ₹62.52, BVPS: ₹1283.11
Method Types: Earnings Asset DCF Growth Dividend Conservative

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

Valuation Comparison Chart

HCLTECH Intrinsic Value Analysis

What is the intrinsic value of HCLTECH?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of HCL Technologies (HCLTECH) is ₹1343.49 (median value). With the current market price of ₹1647.70, this represents a -18.5% variance from our estimated fair value.

The valuation range spans from ₹494.31 to ₹3548.11, indicating ₹494.31 - ₹3548.11.

Is HCLTECH undervalued or overvalued?

Based on our multi-method analysis, HCL Technologies (HCLTECH) appears to be trading above median value by approximately 18.5%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 7.93 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 24.3% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 20.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 1.23x 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 ₹22,261 Cr ₹19,813 Cr Positive Free Cash Flow 8/10
March 2024 ₹22,448 Cr ₹19,144 Cr Positive Free Cash Flow 8/10
March 2023 ₹18,009 Cr ₹16,223 Cr Positive Free Cash Flow 8/10
March 2022 ₹16,900 Cr ₹16,900 Cr Positive Free Cash Flow 8/10
March 2021 ₹19,618 Cr ₹16,786 Cr Positive Free Cash Flow 8/10