Kennametal Intrinsic Value
KENNAMET • Capital Goods
Current Stock Price
₹2111.70
Primary Intrinsic Value
₹687.84
Market Cap
₹4646 Cr
-70.0%
Downside
Median Value
₹633.51
Value Range
₹422 - ₹1056
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%
KENNAMET Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹687.84 | ₹550.27 - ₹825.41 | -67.4% | EPS: ₹57.32, Sector P/E: 12x |
| Book Value Method | asset | ₹422.34 | ₹380.11 - ₹464.57 | -80.0% | Book Value/Share: ₹293.64, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹633.51 | ₹570.16 - ₹696.86 | -70.0% | Revenue/Share: ₹489.09, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹844.68 | ₹760.21 - ₹929.15 | -60.0% | EBITDA: ₹192.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹844.68 | ₹675.74 - ₹1013.62 | -60.0% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹633.51 | ₹570.16 - ₹696.86 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹633.51 | ₹570.16 - ₹696.86 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹1055.85 | ₹950.26 - ₹1161.43 | -50.0% | ROE: 19.8%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹633.51 | ₹570.16 - ₹696.86 | -70.0% | EPS: ₹57.32, BVPS: ₹293.64 |
Method Types:
Earnings
Asset
DCF
Growth
Dividend
Conservative
Valuation Comparison Chart
KENNAMET Intrinsic Value Analysis
What is the intrinsic value of KENNAMET?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Kennametal (KENNAMET) is ₹633.51 (median value). With the current market price of ₹2111.70, this represents a -70.0% variance from our estimated fair value.
The valuation range spans from ₹422.34 to ₹1055.85, indicating ₹422.34 - ₹1055.85.
Is KENNAMET undervalued or overvalued?
Based on our multi-method analysis, Kennametal (KENNAMET) appears to be trading above calculated value by approximately 70.0%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 59.88 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 19.8% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 18.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 1.30x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
Related Pages for Kennametal
Additional stock information and data for KENNAMET
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2022 | ₹49 Cr | ₹18 Cr | Positive Free Cash Flow | 7/10 |
| March 2021 | ₹166 Cr | ₹154 Cr | Positive Free Cash Flow | 8/10 |
| March 2020 | ₹34 Cr | ₹7 Cr | Positive Free Cash Flow | 7/10 |
| March 2019 | ₹71 Cr | ₹18 Cr | Positive Free Cash Flow | 7/10 |