JK Tyre & Industries Intrinsic Value

JKTYRE • Automobiles
Current Stock Price
₹506.50
Primary Intrinsic Value
₹387.84
Market Cap
₹2786 Cr
+78.9% Upside
Median Value
₹906.18
Value Range
₹207 - ₹1209
Assessment
Trading Below Calculated Value
Safety Margin
44.1%

JKTYRE Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹387.84 ₹310.27 - ₹465.41 -23.4% EPS: ₹32.32, Sector P/E: 12x
Book Value Method asset ₹906.18 ₹815.56 - ₹996.80 +78.9% Book Value/Share: ₹906.18, P/B: 1.0x
Revenue Multiple Method revenue ₹1013.00 ₹911.70 - ₹1114.30 +100.0% Revenue/Share: ₹2928.00, P/S: 0.8x
EBITDA Multiple Method earnings ₹1013.00 ₹911.70 - ₹1114.30 +100.0% EBITDA: ₹2112.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹1208.58 ₹966.86 - ₹1450.30 +138.6% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹206.85 ₹186.16 - ₹227.54 -59.2% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹266.32 ₹239.69 - ₹292.95 -47.4% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹1013.00 ₹911.70 - ₹1114.30 +100.0% ROE: 18.2%, P/E Multiple: 14x
Graham Defensive Method conservative ₹811.77 ₹730.59 - ₹892.95 +60.3% EPS: ₹32.32, BVPS: ₹906.18
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

JKTYRE Intrinsic Value Analysis

What is the intrinsic value of JKTYRE?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of JK Tyre & Industries (JKTYRE) is ₹906.18 (median value). With the current market price of ₹506.50, this represents a +78.9% variance from our estimated fair value.

The valuation range spans from ₹206.85 to ₹1208.58, indicating ₹206.85 - ₹1208.58.

Is JKTYRE undervalued or overvalued?

Based on our multi-method analysis, JK Tyre & Industries (JKTYRE) appears to be trading below calculated value by approximately 78.9%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 1.86 Industry Standard: 2.0+ Above 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio 2.91 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 18.2% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 13.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 1.11x 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 ₹716 Cr ₹485 Cr Positive Free Cash Flow 8/10
March 2024 ₹1,614 Cr ₹1,013 Cr Positive Free Cash Flow 8/10
March 2023 ₹1,224 Cr ₹1,025 Cr Positive Free Cash Flow 8/10
March 2022 ₹346 Cr ₹224 Cr Positive Free Cash Flow 8/10
March 2021 ₹1,598 Cr ₹1,531 Cr Positive Free Cash Flow 8/10