Railtel Corporation of India Intrinsic Value

RAILTEL • Telecom
Current Stock Price
₹371.00
Primary Intrinsic Value
₹111.30
Market Cap
₹119.1K Cr
-70.0% Downside
Median Value
₹111.30
Value Range
₹74 - ₹186
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

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
Method Types: Earnings Asset DCF Growth Dividend Conservative

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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

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