Polycab Intrinsic Value

POLYCAB • Industrial Products
Current Stock Price
₹7685.00
Primary Intrinsic Value
₹2305.50
Market Cap
₹1152.8K Cr
-70.0% Downside
Median Value
₹2305.50
Value Range
₹1537 - ₹3843
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

POLYCAB Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹2305.50 ₹1844.40 - ₹2766.60 -70.0% EPS: ₹182.16, Sector P/E: 12x
Book Value Method asset ₹1537.00 ₹1383.30 - ₹1690.70 -80.0% Book Value/Share: ₹660.47, P/B: 1.0x
Revenue Multiple Method revenue ₹2305.50 ₹2074.95 - ₹2536.05 -70.0% Revenue/Share: ₹1739.47, P/S: 0.8x
EBITDA Multiple Method earnings ₹3074.00 ₹2766.60 - ₹3381.40 -60.0% EBITDA: ₹4264.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹3074.00 ₹2459.20 - ₹3688.80 -60.0% CF Growth: 9.6%, Discount: 15%
PEG Ratio Method growth ₹2305.50 ₹2074.95 - ₹2536.05 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹2305.50 ₹2074.95 - ₹2536.05 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹3842.50 ₹3458.25 - ₹4226.75 -50.0% ROE: 28.0%, P/E Multiple: 16x
Graham Defensive Method conservative ₹2305.50 ₹2074.95 - ₹2536.05 -70.0% EPS: ₹182.16, BVPS: ₹660.47
Method Types: Earnings Asset DCF Growth Dividend Conservative

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

Valuation Comparison Chart

POLYCAB Intrinsic Value Analysis

What is the intrinsic value of POLYCAB?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Polycab (POLYCAB) is ₹2305.50 (median value). With the current market price of ₹7685.00, this represents a -70.0% variance from our estimated fair value.

The valuation range spans from ₹1537.00 to ₹3842.50, indicating ₹1537.00 - ₹3842.50.

Is POLYCAB undervalued or overvalued?

Based on our multi-method analysis, Polycab (POLYCAB) 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 26.18 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.39 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 28.0% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 16.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 1.89x 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 ₹1,809 Cr ₹1,190 Cr Positive Free Cash Flow 8/10
March 2024 ₹1,296 Cr ₹920 Cr Positive Free Cash Flow 8/10
March 2023 ₹1,428 Cr ₹827 Cr Positive Free Cash Flow 8/10
March 2022 ₹512 Cr ₹299 Cr Positive Free Cash Flow 8/10
March 2021 ₹1,252 Cr ₹746 Cr Positive Free Cash Flow 8/10