ITC Intrinsic Value
ITC Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹196.32 | ₹157.06 - ₹235.58 | -40.0% | EPS: ₹16.36, Sector P/E: 12x |
| Book Value Method | asset | ₹562.73 | ₹506.46 - ₹619.00 | +72.1% | Book Value/Share: ₹562.73, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹512.41 | ₹461.17 - ₹563.65 | +56.7% | Revenue/Share: ₹640.51, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹654.00 | ₹588.60 - ₹719.40 | +100.0% | EBITDA: ₹28900.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹817.50 | ₹654.00 - ₹981.00 | +150.0% | CF Growth: 8.9%, Discount: 15% |
| PEG Ratio Method | growth | ₹104.70 | ₹94.23 - ₹115.17 | -68.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹134.81 | ₹121.33 - ₹148.29 | -58.8% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹654.00 | ₹588.60 - ₹719.40 | +100.0% | ROE: 29.5%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹455.13 | ₹409.62 - ₹500.64 | +39.2% | EPS: ₹16.36, BVPS: ₹562.73 |
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Valuation Comparison Chart
ITC Intrinsic Value Analysis
What is the intrinsic value of ITC?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of ITC (ITC) is ₹512.41 (median value). With the current market price of ₹327.00, this represents a +56.7% variance from our estimated fair value.
The valuation range spans from ₹104.70 to ₹817.50, indicating ₹104.70 - ₹817.50.
Is ITC undervalued or overvalued?
Based on our multi-method analysis, ITC (ITC) appears to be trading below calculated value by approximately 56.7%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 13.07 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 1.25 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 29.5% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 34.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.91x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for ITC
Additional stock information and data for ITC
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹17,627 Cr | ₹17,345 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹17,179 Cr | ₹17,179 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹18,878 Cr | ₹16,012 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹15,776 Cr | ₹14,657 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹12,527 Cr | ₹12,527 Cr | Positive Free Cash Flow | 8/10 |