Indian Oil Corporation Intrinsic Value

IOC • Petroleum Products
Current Stock Price
₹162.67
Primary Intrinsic Value
₹272.64
Market Cap
₹2240.3K Cr
+43.8% Upside
Median Value
₹233.91
Value Range
₹111 - ₹325
Assessment
Trading Below Calculated Value
Safety Margin
30.5%

IOC Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹272.64 ₹218.11 - ₹327.17 +67.6% EPS: ₹22.72, Sector P/E: 12x
Book Value Method asset ₹110.96 ₹99.86 - ₹122.06 -31.8% Book Value/Share: ₹138.71, P/B: 0.8x
Revenue Multiple Method revenue ₹261.38 ₹235.24 - ₹287.52 +60.7% Revenue/Share: ₹522.75, P/S: 0.5x
EBITDA Multiple Method earnings ₹184.85 ₹166.37 - ₹203.34 +13.6% EBITDA: ₹70404.00Cr, EV/EBITDA: 4x
Simple DCF (5Y) dcf ₹233.91 ₹187.13 - ₹280.69 +43.8% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹145.41 ₹130.87 - ₹159.95 -10.6% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹187.21 ₹168.49 - ₹205.93 +15.1% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹325.34 ₹292.81 - ₹357.87 +100.0% ROE: 17.2%, P/E Multiple: 14x
Graham Defensive Method conservative ₹266.28 ₹239.65 - ₹292.91 +63.7% EPS: ₹22.72, BVPS: ₹138.71
Method Types: Earnings Asset DCF Growth Dividend Conservative

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

Valuation Comparison Chart

IOC Intrinsic Value Analysis

What is the intrinsic value of IOC?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Indian Oil Corporation (IOC) is ₹233.91 (median value). With the current market price of ₹162.67, this represents a +43.8% variance from our estimated fair value.

The valuation range spans from ₹110.96 to ₹325.34, indicating ₹110.96 - ₹325.34.

Is IOC undervalued or overvalued?

Based on our multi-method analysis, Indian Oil Corporation (IOC) appears to be trading below calculated value by approximately 43.8%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 1.85 Industry Standard: 2.0+ Above 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio 2.65 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 17.2% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 9.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 1.42x 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 ₹34,699 Cr ₹18,775 Cr Positive Free Cash Flow 8/10
March 2024 ₹71,146 Cr ₹55,390 Cr Positive Free Cash Flow 8/10
March 2023 ₹29,644 Cr ₹15,629 Cr Positive Free Cash Flow 8/10
March 2022 ₹25,747 Cr ₹15,100 Cr Positive Free Cash Flow 8/10
March 2021 ₹49,650 Cr ₹38,183 Cr Positive Free Cash Flow 8/10