IREDA Intrinsic Value

IREDA • Financial Services
Current Stock Price
₹108.98
Primary Intrinsic Value
₹94.56
Market Cap
₹292.9K Cr
-29.9% Downside
Median Value
₹76.39
Value Range
₹31 - ₹142
Assessment
Trading Above Calculated Value
Safety Margin
-42.7%

IREDA Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹94.56 ₹75.65 - ₹113.47 -13.2% EPS: ₹7.88, Sector P/E: 12x
Book Value Method asset ₹30.56 ₹27.50 - ₹33.62 -72.0% Book Value/Share: ₹38.20, P/B: 0.8x
Revenue Multiple Method revenue ₹32.69 ₹29.42 - ₹35.96 -70.0% Revenue/Share: ₹30.52, P/S: 1.0x
EBITDA Multiple Method earnings ₹142.34 ₹128.11 - ₹156.57 +30.6% EBITDA: ₹7652.00Cr, EV/EBITDA: 5x
PEG Ratio Method growth ₹50.43 ₹45.39 - ₹55.47 -53.7% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹64.93 ₹58.44 - ₹71.42 -40.4% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹130.71 ₹117.64 - ₹143.78 +19.9% ROE: 21.4%, P/E Multiple: 16x
Graham Defensive Method conservative ₹76.39 ₹68.75 - ₹84.03 -29.9% EPS: ₹7.88, BVPS: ₹38.20
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

IREDA Intrinsic Value Analysis

What is the intrinsic value of IREDA?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of IREDA (IREDA) is ₹76.39 (median value). With the current market price of ₹108.98, this represents a -29.9% variance from our estimated fair value.

The valuation range spans from ₹30.56 to ₹142.34, indicating ₹30.56 - ₹142.34.

Is IREDA undervalued or overvalued?

Based on our multi-method analysis, IREDA (IREDA) appears to be trading above calculated value by approximately 29.9%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 0.05 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Return on Equity 21.4% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 93.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.10x 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 ₹-14,460 Cr ₹-14,719 Cr Negative Cash Flow 3/10
March 2024 ₹-11,100 Cr ₹-11,112 Cr Negative Cash Flow 3/10
March 2021 ₹-3,206 Cr ₹-3,207 Cr Negative Cash Flow 3/10
March 2020 ₹-1,709 Cr ₹-1,709 Cr Negative Cash Flow 3/10
March 2019 ₹-5,018 Cr ₹-5,037 Cr Negative Cash Flow 3/10