IRFC Intrinsic Value

IRFC • Financial Services
Current Stock Price
₹87.23
Primary Intrinsic Value
₹64.80
Market Cap
₹1140.0K Cr
-35.6% Downside
Median Value
₹56.20
Value Range
₹26 - ₹101
Assessment
Trading Above Calculated Value
Safety Margin
-55.2%

IRFC Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹64.80 ₹51.84 - ₹77.76 -25.7% EPS: ₹5.40, Sector P/E: 12x
Book Value Method asset ₹32.24 ₹29.02 - ₹35.46 -63.0% Book Value/Share: ₹40.30, P/B: 0.8x
Revenue Multiple Method revenue ₹26.17 ₹23.55 - ₹28.79 -70.0% Revenue/Share: ₹20.46, P/S: 1.0x
EBITDA Multiple Method earnings ₹101.34 ₹91.21 - ₹111.47 +16.2% EBITDA: ₹26489.00Cr, EV/EBITDA: 5x
Simple DCF (5Y) dcf ₹56.20 ₹44.96 - ₹67.44 -35.6% CF Growth: 4.0%, Discount: 15%
PEG Ratio Method growth ₹26.17 ₹23.55 - ₹28.79 -70.0% EPS Growth: 3.8%, Fair P/E: 3.0x
Growth Adjusted P/E growth ₹44.74 ₹40.27 - ₹49.21 -48.7% Revenue Growth: 7.1%, Adj P/E: 8.3x
ROE Based Valuation profitability ₹64.34 ₹57.91 - ₹70.77 -26.2% ROE: 13.3%, P/E Multiple: 12x
Graham Defensive Method conservative ₹69.97 ₹62.97 - ₹76.97 -19.8% EPS: ₹5.40, BVPS: ₹40.30
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

IRFC Intrinsic Value Analysis

What is the intrinsic value of IRFC?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of IRFC (IRFC) is ₹56.20 (median value). With the current market price of ₹87.23, this represents a -35.6% variance from our estimated fair value.

The valuation range spans from ₹26.17 to ₹101.34, indicating ₹26.17 - ₹101.34.

Is IRFC undervalued or overvalued?

Based on our multi-method analysis, IRFC (IRFC) appears to be trading above calculated value by approximately 35.6%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 1.17 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Return on Equity 13.3% Industry Standard: 15%+ Above 10% Measures shareholder return efficiency
Operating Margin 99.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.05x Industry Standard: 1.0x+ Below 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹8,230 Cr ₹8,230 Cr Positive Free Cash Flow 8/10
March 2024 ₹7,914 Cr ₹7,910 Cr Positive Free Cash Flow 8/10
March 2023 ₹-28,584 Cr ₹-28,584 Cr Negative Cash Flow 3/10
March 2022 ₹-64,412 Cr ₹-64,415 Cr Negative Cash Flow 3/10
March 2021 ₹-89,907 Cr ₹-89,907 Cr Negative Cash Flow 3/10