Nestle Intrinsic Value

NESTLEIND • Food Products
Current Stock Price
₹1314.80
Primary Intrinsic Value
₹394.44
Market Cap
₹126.2K Cr
-68.2% Downside
Median Value
₹417.71
Value Range
₹394 - ₹2839
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

NESTLEIND Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹394.44 ₹315.55 - ₹473.33 -70.0% EPS: ₹15.44, Sector P/E: 12x
Book Value Method asset ₹417.71 ₹375.94 - ₹459.48 -68.2% Book Value/Share: ₹417.71, P/B: 1.0x
Revenue Multiple Method revenue ₹1877.33 ₹1689.60 - ₹2065.06 +42.8% Revenue/Share: ₹2346.67, P/S: 0.8x
EBITDA Multiple Method earnings ₹2629.60 ₹2366.64 - ₹2892.56 +100.0% EBITDA: ₹4860.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹2839.30 ₹2271.44 - ₹3407.16 +115.9% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹394.44 ₹355.00 - ₹433.88 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹394.44 ₹355.00 - ₹433.88 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹2629.60 ₹2366.64 - ₹2892.56 +100.0% ROE: 74.1%, P/E Multiple: 16x
Graham Defensive Method conservative ₹394.44 ₹355.00 - ₹433.88 -70.0% EPS: ₹15.44, BVPS: ₹417.71
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

NESTLEIND Intrinsic Value Analysis

What is the intrinsic value of NESTLEIND?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Nestle (NESTLEIND) is ₹417.71 (median value). With the current market price of ₹1314.80, this represents a -68.2% variance from our estimated fair value.

The valuation range spans from ₹394.44 to ₹2839.30, indicating ₹394.44 - ₹2839.30.

Is NESTLEIND undervalued or overvalued?

Based on our multi-method analysis, Nestle (NESTLEIND) appears to be trading above calculated value by approximately 68.2%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 1.07 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio 3.04 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 74.1% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 22.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 1.85x 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 ₹2,936 Cr ₹2,031 Cr Positive Free Cash Flow 8/10
March 2024 ₹4,175 Cr ₹3,557 Cr Positive Free Cash Flow 8/10