Rainbow Childrens Medicare Intrinsic Value

RAINBOW • Healthcare Services
Current Stock Price
₹1272.80
Primary Intrinsic Value
₹381.84
Market Cap
₹129.8K Cr
-70.0% Downside
Median Value
₹381.84
Value Range
₹255 - ₹636
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

RAINBOW Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹381.84 ₹305.47 - ₹458.21 -70.0% EPS: ₹29.64, Sector P/E: 12x
Book Value Method asset ₹254.56 ₹229.10 - ₹280.02 -80.0% Book Value/Share: ₹144.61, P/B: 1.0x
Revenue Multiple Method revenue ₹381.84 ₹343.66 - ₹420.02 -70.0% Revenue/Share: ₹177.65, P/S: 0.8x
EBITDA Multiple Method earnings ₹509.12 ₹458.21 - ₹560.03 -60.0% EBITDA: ₹628.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹527.35 ₹421.88 - ₹632.82 -58.6% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹381.84 ₹343.66 - ₹420.02 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹381.84 ₹343.66 - ₹420.02 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹636.40 ₹572.76 - ₹700.04 -50.0% ROE: 20.6%, P/E Multiple: 16x
Graham Defensive Method conservative ₹381.84 ₹343.66 - ₹420.02 -70.0% EPS: ₹29.64, BVPS: ₹144.61
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

RAINBOW Intrinsic Value Analysis

What is the intrinsic value of RAINBOW?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Rainbow Childrens Medicare (RAINBOW) is ₹381.84 (median value). With the current market price of ₹1272.80, this represents a -70.0% variance from our estimated fair value.

The valuation range spans from ₹254.56 to ₹636.40, indicating ₹254.56 - ₹636.40.

Is RAINBOW undervalued or overvalued?

Based on our multi-method analysis, Rainbow Childrens Medicare (RAINBOW) 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 1.09 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio 1.61 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 20.6% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 33.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.76x 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 2025 ₹396 Cr ₹262 Cr Positive Free Cash Flow 8/10
March 2024 ₹321 Cr ₹208 Cr Positive Free Cash Flow 8/10
March 2023 ₹327 Cr ₹95 Cr Positive Free Cash Flow 7/10
March 2022 ₹224 Cr ₹137 Cr Positive Free Cash Flow 8/10
March 2021 ₹143 Cr ₹102 Cr Positive Free Cash Flow 8/10