HCL Technologies Intrinsic Value
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 |
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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 |
Related Pages for HCL Technologies
Additional stock information and data for HCLTECH
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 |