Reliance Power Intrinsic Value

RPOWER • Power
Current Stock Price
₹33.88
Primary Intrinsic Value
₹10.16
Market Cap
₹136.1K Cr
-18.2% Downside
Median Value
₹27.72
Value Range
₹10 - ₹45
Assessment
Trading Above Median Value
Safety Margin
-22.2%

RPOWER Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹10.16 ₹8.13 - ₹12.19 -70.0% EPS: ₹0.84, Sector P/E: 12x
Book Value Method asset ₹40.67 ₹36.60 - ₹44.74 +20.0% Book Value/Share: ₹40.67, P/B: 1.0x
Revenue Multiple Method revenue ₹16.47 ₹14.82 - ₹18.12 -51.4% Revenue/Share: ₹20.58, P/S: 0.8x
EBITDA Multiple Method earnings ₹33.77 ₹30.39 - ₹37.15 -0.3% EBITDA: ₹2844.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹44.79 ₹35.83 - ₹53.75 +32.2% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹10.16 ₹9.14 - ₹11.18 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹10.16 ₹9.14 - ₹11.18 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
Graham Defensive Method conservative ₹27.72 ₹24.95 - ₹30.49 -18.2% 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 ₹33.88, this represents a -18.2% variance from our estimated fair value.

The valuation range spans from ₹10.16 to ₹44.79, indicating ₹10.16 - ₹44.79.

Is RPOWER undervalued or overvalued?

Based on our multi-method analysis, Reliance Power (RPOWER) appears to be trading above median value by approximately 18.2%.

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
Debt to Equity Ratio 2.53 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
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