Reliance Home Finance Intrinsic Value

RHFL • Financial Services
Current Stock Price
₹4.15
Primary Intrinsic Value
₹6.00
Market Cap
₹201.3 Cr
-3.6% Downside
Median Value
₹4.00
Value Range
₹1 - ₹10
Assessment
Trading Near Calculated Value
Safety Margin
-3.8%

RHFL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹6.00 ₹4.80 - ₹7.20 +44.6% EPS: ₹0.50, Sector P/E: 12x
Revenue Multiple Method revenue ₹1.25 ₹1.12 - ₹1.38 -69.9% Revenue/Share: ₹0.60, P/S: 1.0x
EBITDA Multiple Method earnings ₹2.58 ₹2.32 - ₹2.84 -37.8% EBITDA: ₹25.00Cr, EV/EBITDA: 5x
Simple DCF (5Y) dcf ₹10.38 ₹8.30 - ₹12.46 +150.1% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹3.20 ₹2.88 - ₹3.52 -22.9% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹4.00 ₹3.60 - ₹4.40 -3.6% Revenue Growth: -30.0%, Adj P/E: 8.0x
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check RHFL share price latest .

Valuation Comparison Chart

RHFL Intrinsic Value Analysis

What is the intrinsic value of RHFL?

Based on our comprehensive analysis using 6 different valuation methods, the estimated intrinsic value of Reliance Home Finance (RHFL) is ₹4.00 (median value). With the current market price of ₹4.15, this represents a -3.6% variance from our estimated fair value.

The valuation range spans from ₹1.25 to ₹10.38, indicating ₹1.25 - ₹10.38.

Is RHFL undervalued or overvalued?

Based on our multi-method analysis, Reliance Home Finance (RHFL) appears to be trading near calculated value by approximately 3.6%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 0.40 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio -0.47 Industry Standard: <0.5 Below 0.5 Indicates financial leverage level
Return on Equity -32.4% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin -3275.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 0.83x 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 ₹4,103 Cr ₹4,051 Cr Positive Free Cash Flow 8/10
March 2022 ₹-597 Cr ₹-597 Cr Negative Cash Flow 3/10
March 2021 ₹3,068 Cr ₹2,288 Cr Positive Free Cash Flow 8/10
March 2020 ₹4,713 Cr ₹4,285 Cr Positive Free Cash Flow 8/10
March 2019 ₹-1,189 Cr ₹-1,217 Cr Negative Cash Flow 3/10