Mahindra & Mahindra Intrinsic Value
M&M Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹1579.20 | ₹1263.36 - ₹1895.04 | -53.7% | EPS: ₹131.60, Sector P/E: 12x |
| Book Value Method | asset | ₹1596.74 | ₹1437.07 - ₹1756.41 | -53.2% | Book Value/Share: ₹1596.74, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹2697.06 | ₹2427.35 - ₹2966.77 | -21.0% | Revenue/Share: ₹3371.33, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹4081.06 | ₹3672.95 - ₹4489.17 | +19.6% | EBITDA: ₹39416.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹1365.12 | ₹1092.10 - ₹1638.14 | -60.0% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹1023.84 | ₹921.46 - ₹1126.22 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹1084.38 | ₹975.94 - ₹1192.82 | -68.2% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹3978.21 | ₹3580.39 - ₹4376.03 | +16.6% | ROE: 17.8%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹2174.38 | ₹1956.94 - ₹2391.82 | -36.3% | EPS: ₹131.60, BVPS: ₹1596.74 |
Want to compare with current market value? Check M&M share price latest .
Valuation Comparison Chart
M&M Intrinsic Value Analysis
What is the intrinsic value of M&M?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Mahindra & Mahindra (M&M) is ₹1596.74 (median value). With the current market price of ₹3412.80, this represents a -53.2% variance from our estimated fair value.
The valuation range spans from ₹1023.84 to ₹4081.06, indicating ₹1023.84 - ₹4081.06.
Is M&M undervalued or overvalued?
Based on our multi-method analysis, Mahindra & Mahindra (M&M) appears to be trading above calculated value by approximately 53.2%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 1.29 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 3.12 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 17.8% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 19.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.68x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for Mahindra & Mahindra
Additional stock information and data for M&M
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹3,176 Cr | ₹-6,132 Cr | Positive Operating Cash Flow | 6/10 |
| March 2024 | ₹-5,630 Cr | ₹-8,438 Cr | Negative Cash Flow | 3/10 |
| March 2023 | ₹-7,074 Cr | ₹-11,507 Cr | Negative Cash Flow | 3/10 |
| March 2022 | ₹9,248 Cr | ₹7,622 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹17,909 Cr | ₹8,066 Cr | Positive Free Cash Flow | 7/10 |