Railtel Corporation of India Intrinsic Value
RAILTEL Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹111.30 | ₹89.04 - ₹133.56 | -70.0% | EPS: ₹8.48, Sector P/E: 12x |
| Book Value Method | asset | ₹74.20 | ₹66.78 - ₹81.62 | -80.0% | Book Value/Share: ₹51.37, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹111.30 | ₹100.17 - ₹122.43 | -70.0% | Revenue/Share: ₹76.39, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹148.40 | ₹133.56 - ₹163.24 | -60.0% | EBITDA: ₹516.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹148.40 | ₹118.72 - ₹178.08 | -60.0% | CF Growth: 15.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹111.30 | ₹100.17 - ₹122.43 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹111.30 | ₹100.17 - ₹122.43 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹185.50 | ₹166.95 - ₹204.05 | -50.0% | ROE: 16.5%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹111.30 | ₹100.17 - ₹122.43 | -70.0% | EPS: ₹8.48, BVPS: ₹51.37 |
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Valuation Comparison Chart
RAILTEL Intrinsic Value Analysis
What is the intrinsic value of RAILTEL?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Railtel Corporation of India (RAILTEL) is ₹111.30 (median value). With the current market price of ₹371.00, this represents a -70.0% variance from our estimated fair value.
The valuation range spans from ₹74.20 to ₹185.50, indicating ₹74.20 - ₹185.50.
Is RAILTEL undervalued or overvalued?
Based on our multi-method analysis, Railtel Corporation of India (RAILTEL) 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 | 11.78 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 2.02 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 16.5% | 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 | 0.73x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for Railtel Corporation of India
Additional stock information and data for RAILTEL
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2023 | ₹230 Cr | ₹155 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹250 Cr | ₹146 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹348 Cr | ₹287 Cr | Positive Free Cash Flow | 8/10 |
| March 2020 | ₹173 Cr | ₹149 Cr | Positive Free Cash Flow | 8/10 |
| March 2019 | ₹35 Cr | ₹35 Cr | Positive Free Cash Flow | 8/10 |