RS Software Intrinsic Value

RSSOFTWARE • Information Technology
Current Stock Price
₹46.92
Primary Intrinsic Value
₹45.38
Market Cap
₹61.0 Cr
-3.3% Downside
Median Value
₹45.38
Value Range
₹15 - ₹57
Assessment
Trading Near Calculated Value
Safety Margin
-3.4%

RSSOFTWARE Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
Book Value Method asset ₹45.38 ₹40.84 - ₹49.92 -3.3% Book Value/Share: ₹45.38, P/B: 1.0x
Revenue Multiple Method revenue ₹14.77 ₹13.29 - ₹16.25 -68.5% Revenue/Share: ₹18.46, P/S: 0.8x
Simple DCF (5Y) dcf ₹57.13 ₹45.70 - ₹68.56 +21.8% CF Growth: 5.0%, Discount: 15%
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

RSSOFTWARE Intrinsic Value Analysis

What is the intrinsic value of RSSOFTWARE?

Based on our comprehensive analysis using 3 different valuation methods, the estimated intrinsic value of RS Software (RSSOFTWARE) is ₹45.38 (median value). With the current market price of ₹46.92, this represents a -3.3% variance from our estimated fair value.

The valuation range spans from ₹14.77 to ₹57.13, indicating ₹14.77 - ₹57.13.

Is RSSOFTWARE undervalued or overvalued?

Based on our multi-method analysis, RS Software (RSSOFTWARE) appears to be trading near calculated value by approximately 3.3%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 29.00 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.24 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity -40.7% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin -79.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 0.33x 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 ₹8 Cr ₹4 Cr Positive Free Cash Flow 7/10
March 2024 ₹16 Cr ₹16 Cr Positive Free Cash Flow 8/10
March 2023 ₹-10 Cr ₹-10 Cr Negative Cash Flow 3/10
March 2022 ₹9 Cr ₹8 Cr Positive Free Cash Flow 8/10
March 2021 ₹-15 Cr ₹-15 Cr Negative Cash Flow 3/10