Reliance Power Intrinsic Value

RPOWER • Power
Current Stock Price
₹22.55
Primary Intrinsic Value
₹10.08
Market Cap
₹9058 Cr
+22.9% Upside
Median Value
₹27.72
Value Range
₹7 - ₹45
Assessment
Trading Below Calculated Value
Safety Margin
18.7%

RPOWER Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹10.08 ₹8.06 - ₹12.10 -55.3% EPS: ₹0.84, Sector P/E: 12x
Book Value Method asset ₹40.67 ₹36.60 - ₹44.74 +80.4% Book Value/Share: ₹40.67, P/B: 1.0x
Revenue Multiple Method revenue ₹16.47 ₹14.82 - ₹18.12 -27.0% Revenue/Share: ₹20.58, P/S: 0.8x
EBITDA Multiple Method earnings ₹42.48 ₹38.23 - ₹46.73 +88.4% EBITDA: ₹2844.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹44.79 ₹35.83 - ₹53.75 +98.6% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹6.76 ₹6.08 - ₹7.44 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹6.92 ₹6.23 - ₹7.61 -69.3% Revenue Growth: 6.0%, Adj P/E: 8.2x
Graham Defensive Method conservative ₹27.72 ₹24.95 - ₹30.49 +22.9% EPS: ₹0.84, BVPS: ₹40.67
Method Types: Earnings Asset DCF Growth Dividend Conservative

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

Valuation Comparison Chart

RPOWER Intrinsic Value Analysis

What is the intrinsic value of RPOWER?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Reliance Power (RPOWER) is ₹27.72 (median value). With the current market price of ₹22.55, this represents a +22.9% variance from our estimated fair value.

The valuation range spans from ₹6.76 to ₹44.79, indicating ₹6.76 - ₹44.79.

Is RPOWER undervalued or overvalued?

Based on our multi-method analysis, Reliance Power (RPOWER) appears to be trading below calculated value by approximately 22.9%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 0.27 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Return on Equity 2.1% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 31.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.20x Industry Standard: 1.0x+ Below 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹1,938 Cr ₹1,938 Cr Positive Free Cash Flow 8/10
March 2024 ₹3,174 Cr ₹3,078 Cr Positive Free Cash Flow 8/10
March 2023 ₹4,024 Cr ₹3,847 Cr Positive Free Cash Flow 8/10
March 2022 ₹3,613 Cr ₹3,613 Cr Positive Free Cash Flow 8/10
March 2021 ₹4,149 Cr ₹4,149 Cr Positive Free Cash Flow 8/10