Ramco Systems Intrinsic Value

RAMCOSYS • Information Technology
Current Stock Price
₹531.15
Primary Intrinsic Value
₹161.76
Market Cap
₹1965 Cr
-69.5% Downside
Median Value
₹161.76
Value Range
₹106 - ₹284
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

RAMCOSYS Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹161.76 ₹129.41 - ₹194.11 -69.5% EPS: ₹13.48, Sector P/E: 12x
Book Value Method asset ₹106.23 ₹95.61 - ₹116.85 -80.0% Book Value/Share: ₹86.49, P/B: 1.0x
Revenue Multiple Method revenue ₹159.34 ₹143.41 - ₹175.27 -70.0% Revenue/Share: ₹191.35, P/S: 0.8x
EBITDA Multiple Method earnings ₹256.74 ₹231.07 - ₹282.41 -51.7% EBITDA: ₹164.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹283.53 ₹226.82 - ₹340.24 -46.6% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹159.34 ₹143.41 - ₹175.27 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹159.34 ₹143.41 - ₹175.27 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹265.57 ₹239.01 - ₹292.13 -50.0% ROE: 16.2%, P/E Multiple: 14x
Graham Defensive Method conservative ₹161.96 ₹145.76 - ₹178.16 -69.5% EPS: ₹13.48, BVPS: ₹86.49
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

RAMCOSYS Intrinsic Value Analysis

What is the intrinsic value of RAMCOSYS?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Ramco Systems (RAMCOSYS) is ₹161.76 (median value). With the current market price of ₹531.15, this represents a -69.5% variance from our estimated fair value.

The valuation range spans from ₹106.23 to ₹283.53, indicating ₹106.23 - ₹283.53.

Is RAMCOSYS undervalued or overvalued?

Based on our multi-method analysis, Ramco Systems (RAMCOSYS) appears to be trading above calculated value by approximately 69.5%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 2.64 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 2.09 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 16.2% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 22.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 1.06x 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 ₹113 Cr ₹59 Cr Positive Free Cash Flow 8/10
March 2024 ₹104 Cr ₹61 Cr Positive Free Cash Flow 8/10
March 2023 ₹40 Cr ₹-27 Cr Positive Operating Cash Flow 6/10
March 2022 ₹92 Cr ₹50 Cr Positive Free Cash Flow 8/10
March 2021 ₹166 Cr ₹137 Cr Positive Free Cash Flow 8/10