Reliance Communications Intrinsic Value
RCOM Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| Revenue Multiple Method | revenue | ₹1.66 | ₹1.49 - ₹1.83 | +100.0% | Revenue/Share: ₹2.75, P/S: 0.8x |
| Simple DCF (5Y) | dcf | ₹1.75 | ₹1.40 - ₹2.10 | +110.8% | CF Growth: 5.0%, Discount: 15% |
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Valuation Comparison Chart
RCOM Intrinsic Value Analysis
What is the intrinsic value of RCOM?
Based on our comprehensive analysis using 2 different valuation methods, the estimated intrinsic value of Reliance Communications (RCOM) is ₹1.75 (median value). With the current market price of ₹0.83, this represents a +110.8% variance from our estimated fair value.
The valuation range spans from ₹1.66 to ₹1.75, indicating ₹1.66 - ₹1.75.
Is RCOM undervalued or overvalued?
Based on our multi-method analysis, Reliance Communications (RCOM) appears to be trading below calculated value by approximately 110.8%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 42.24 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 11.8% | Industry Standard: 15%+ | Above 10% | Measures shareholder return efficiency |
| Operating Margin | -3069.0% | Industry Standard: 20%+ | Below 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.01x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
Related Pages for Reliance Communications
Additional stock information and data for RCOM
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹26 Cr | ₹26 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹-40 Cr | ₹-40 Cr | Negative Cash Flow | 3/10 |
| March 2023 | ₹-64 Cr | ₹-152 Cr | Negative Cash Flow | 3/10 |
| March 2022 | ₹119 Cr | ₹-30 Cr | Positive Operating Cash Flow | 6/10 |
| March 2021 | ₹328 Cr | ₹325 Cr | Positive Free Cash Flow | 8/10 |