RITES Intrinsic Value

RITES • Construction
Current Stock Price
₹191.74
Primary Intrinsic Value
₹97.92
Market Cap
₹9223 Cr
-57.3% Downside
Median Value
₹81.83
Value Range
₹57 - ₹127
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

RITES Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹97.92 ₹78.34 - ₹117.50 -48.9% EPS: ₹8.16, Sector P/E: 12x
Book Value Method asset ₹57.15 ₹51.44 - ₹62.87 -70.2% Book Value/Share: ₹57.15, P/B: 1.0x
Revenue Multiple Method revenue ₹57.52 ₹51.77 - ₹63.27 -70.0% Revenue/Share: ₹48.48, P/S: 0.8x
EBITDA Multiple Method earnings ₹81.83 ₹73.65 - ₹90.01 -57.3% EBITDA: ₹656.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹124.92 ₹99.94 - ₹149.90 -34.8% CF Growth: 5.4%, Discount: 15%
PEG Ratio Method growth ₹57.52 ₹51.77 - ₹63.27 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹67.24 ₹60.52 - ₹73.96 -64.9% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹126.90 ₹114.21 - ₹139.59 -33.8% ROE: 15.9%, P/E Multiple: 14x
Graham Defensive Method conservative ₹102.44 ₹92.20 - ₹112.68 -46.6% EPS: ₹8.16, BVPS: ₹57.15
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

RITES Intrinsic Value Analysis

What is the intrinsic value of RITES?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of RITES (RITES) is ₹81.83 (median value). With the current market price of ₹191.74, this represents a -57.3% variance from our estimated fair value.

The valuation range spans from ₹57.15 to ₹126.90, indicating ₹57.15 - ₹126.90.

Is RITES undervalued or overvalued?

Based on our multi-method analysis, RITES (RITES) appears to be trading above calculated value by approximately 57.3%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 27.00 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 15.9% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 24.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.38x 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 ₹637 Cr ₹535 Cr Positive Free Cash Flow 8/10
March 2024 ₹432 Cr ₹275 Cr Positive Free Cash Flow 8/10
March 2023 ₹560 Cr ₹560 Cr Positive Free Cash Flow 8/10
March 2022 ₹310 Cr ₹310 Cr Positive Free Cash Flow 8/10
March 2021 ₹516 Cr ₹516 Cr Positive Free Cash Flow 8/10