HEG Intrinsic Value

HEG • Industrial Products
Current Stock Price
₹544.65
Primary Intrinsic Value
₹356.64
Market Cap
₹2124 Cr
+23.4% Upside
Median Value
₹672.00
Value Range
₹190 - ₹1142
Assessment
Trading Below Calculated Value
Safety Margin
19.0%

HEG Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹356.64 ₹285.31 - ₹427.97 -34.5% EPS: ₹29.72, Sector P/E: 12x
Book Value Method asset ₹1142.05 ₹1027.85 - ₹1256.26 +109.7% Book Value/Share: ₹1142.05, P/B: 1.0x
Revenue Multiple Method revenue ₹672.00 ₹604.80 - ₹739.20 +23.4% Revenue/Share: ₹840.00, P/S: 0.8x
EBITDA Multiple Method earnings ₹1089.30 ₹980.37 - ₹1198.23 +100.0% EBITDA: ₹952.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹666.53 ₹533.22 - ₹799.84 +22.4% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹190.21 ₹171.19 - ₹209.23 -65.1% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹244.89 ₹220.40 - ₹269.38 -55.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹1089.30 ₹980.37 - ₹1198.23 +100.0% ROE: 12.8%, P/E Multiple: 12x
Graham Defensive Method conservative ₹873.89 ₹786.50 - ₹961.28 +60.4% EPS: ₹29.72, BVPS: ₹1142.05
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

HEG Intrinsic Value Analysis

What is the intrinsic value of HEG?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of HEG (HEG) is ₹672.00 (median value). With the current market price of ₹544.65, this represents a +23.4% variance from our estimated fair value.

The valuation range spans from ₹190.21 to ₹1142.05, indicating ₹190.21 - ₹1142.05.

Is HEG undervalued or overvalued?

Based on our multi-method analysis, HEG (HEG) appears to be trading below calculated value by approximately 23.4%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 22.54 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 12.8% Industry Standard: 15%+ Above 10% Measures shareholder return efficiency
Operating Margin 17.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.58x 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 ₹280 Cr ₹177 Cr Positive Free Cash Flow 8/10
March 2024 ₹612 Cr ₹520 Cr Positive Free Cash Flow 8/10
March 2023 ₹113 Cr ₹103 Cr Positive Free Cash Flow 8/10
March 2022 ₹-141 Cr ₹-233 Cr Negative Cash Flow 3/10
March 2021 ₹716 Cr ₹508 Cr Positive Free Cash Flow 8/10