ITC Intrinsic Value

ITC • FMCG
Current Stock Price
₹342.45
Primary Intrinsic Value
₹196.32
Market Cap
₹428.4K Cr
+49.6% Upside
Median Value
₹512.41
Value Range
₹105 - ₹856
Assessment
Trading Below Calculated Value
Safety Margin
33.2%

ITC Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹196.32 ₹157.06 - ₹235.58 -42.7% EPS: ₹16.36, Sector P/E: 12x
Book Value Method asset ₹562.73 ₹506.46 - ₹619.00 +64.3% Book Value/Share: ₹562.73, P/B: 1.0x
Revenue Multiple Method revenue ₹512.41 ₹461.17 - ₹563.65 +49.6% Revenue/Share: ₹640.51, P/S: 0.8x
EBITDA Multiple Method earnings ₹684.90 ₹616.41 - ₹753.39 +100.0% EBITDA: ₹28900.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹856.12 ₹684.90 - ₹1027.34 +150.0% CF Growth: 8.9%, Discount: 15%
PEG Ratio Method growth ₹104.70 ₹94.23 - ₹115.17 -69.4% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹134.81 ₹121.33 - ₹148.29 -60.6% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹684.90 ₹616.41 - ₹753.39 +100.0% ROE: 29.5%, P/E Multiple: 16x
Graham Defensive Method conservative ₹455.13 ₹409.62 - ₹500.64 +32.9% EPS: ₹16.36, BVPS: ₹562.73
Dividend Yield Method dividend ₹410.00 ₹369.00 - ₹451.00 +19.7% DPS: ₹14.35, Target Yield: 3.5%
Method Types: Earnings Asset DCF Growth Dividend Conservative

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

Valuation Comparison Chart

ITC Intrinsic Value Analysis

What is the intrinsic value of ITC?

Based on our comprehensive analysis using 10 different valuation methods, the estimated intrinsic value of ITC (ITC) is ₹512.41 (median value). With the current market price of ₹342.45, this represents a +49.6% variance from our estimated fair value.

The valuation range spans from ₹104.70 to ₹856.12, indicating ₹104.70 - ₹856.12.

Is ITC undervalued or overvalued?

Based on our multi-method analysis, ITC (ITC) appears to be trading below calculated value by approximately 49.6%.

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

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