Power Grid Corporation of India Intrinsic Value

POWERGRID • Power
Current Stock Price
₹268.55
Primary Intrinsic Value
₹184.32
Market Cap
₹2497.8K Cr
-31.4% Downside
Median Value
₹184.32
Value Range
₹81 - ₹367
Assessment
Trading Above Calculated Value
Safety Margin
-45.7%

POWERGRID Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹184.32 ₹147.46 - ₹221.18 -31.4% EPS: ₹15.36, Sector P/E: 12x
Book Value Method asset ₹99.63 ₹89.67 - ₹109.59 -62.9% Book Value/Share: ₹99.63, P/B: 1.0x
Revenue Multiple Method revenue ₹80.56 ₹72.50 - ₹88.62 -70.0% Revenue/Share: ₹52.42, P/S: 0.8x
EBITDA Multiple Method earnings ₹228.17 ₹205.35 - ₹250.99 -15.0% EBITDA: ₹39068.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹366.58 ₹293.26 - ₹439.90 +36.5% CF Growth: 5.4%, Discount: 15%
PEG Ratio Method growth ₹98.30 ₹88.47 - ₹108.13 -63.4% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹126.57 ₹113.91 - ₹139.23 -52.9% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹214.70 ₹193.23 - ₹236.17 -20.1% ROE: 15.4%, P/E Multiple: 14x
Graham Defensive Method conservative ₹185.56 ₹167.00 - ₹204.12 -30.9% EPS: ₹15.36, BVPS: ₹99.63
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

POWERGRID Intrinsic Value Analysis

What is the intrinsic value of POWERGRID?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Power Grid Corporation of India (POWERGRID) is ₹184.32 (median value). With the current market price of ₹268.55, this represents a -31.4% variance from our estimated fair value.

The valuation range spans from ₹80.56 to ₹366.58, indicating ₹80.56 - ₹366.58.

Is POWERGRID undervalued or overvalued?

Based on our multi-method analysis, Power Grid Corporation of India (POWERGRID) appears to be trading above calculated value by approximately 31.4%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 0.22 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio 2.87 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 15.4% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 79.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.18x Industry Standard: 1.0x+ Below 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹36,223 Cr ₹24,457 Cr Positive Free Cash Flow 8/10
March 2024 ₹37,290 Cr ₹30,733 Cr Positive Free Cash Flow 8/10
March 2023 ₹40,203 Cr ₹36,634 Cr Positive Free Cash Flow 8/10
March 2022 ₹26,124 Cr ₹26,124 Cr Positive Free Cash Flow 8/10
March 2021 ₹29,403 Cr ₹24,781 Cr Positive Free Cash Flow 8/10