Reliance Industries Intrinsic Value
RELIANCE Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹644.16 | ₹515.33 - ₹772.99 | -53.5% | EPS: ₹53.68, Sector P/E: 12x |
| Book Value Method | asset | ₹596.88 | ₹537.19 - ₹656.57 | -56.9% | Book Value/Share: ₹746.10, P/B: 0.8x |
| Revenue Multiple Method | revenue | ₹415.44 | ₹373.90 - ₹456.98 | -70.0% | Revenue/Share: ₹765.90, P/S: 0.5x |
| EBITDA Multiple Method | earnings | ₹595.53 | ₹535.98 - ₹655.08 | -57.0% | EBITDA: ₹201468.00Cr, EV/EBITDA: 4x |
| Simple DCF (5Y) | dcf | ₹1793.81 | ₹1435.05 - ₹2152.57 | +29.5% | CF Growth: 15.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹415.44 | ₹373.90 - ₹456.98 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹442.32 | ₹398.09 - ₹486.55 | -68.1% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹692.40 | ₹623.16 - ₹761.64 | -50.0% | ROE: 8.8%, P/E Multiple: 10x |
| Graham Defensive Method | conservative | ₹949.29 | ₹854.36 - ₹1044.22 | -31.4% | EPS: ₹53.68, BVPS: ₹746.10 |
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Valuation Comparison Chart
RELIANCE Intrinsic Value Analysis
What is the intrinsic value of RELIANCE?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Reliance Industries (RELIANCE) is ₹596.88 (median value). With the current market price of ₹1384.80, this represents a -56.9% variance from our estimated fair value.
The valuation range spans from ₹415.44 to ₹1793.81, indicating ₹415.44 - ₹1793.81.
Is RELIANCE undervalued or overvalued?
Based on our multi-method analysis, Reliance Industries (RELIANCE) appears to be trading above calculated value by approximately 56.9%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 1.03 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Return on Equity | 8.8% | Industry Standard: 15%+ | Below 10% | Measures shareholder return efficiency |
| Operating Margin | 18.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.53x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for Reliance Industries
Additional stock information and data for RELIANCE
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹178,703 Cr | ₹109,936 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹158,788 Cr | ₹101,998 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹115,032 Cr | ₹68,532 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹110,654 Cr | ₹56,073 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹26,958 Cr | ₹-44,235 Cr | Positive Operating Cash Flow | 6/10 |