Shriram Finance Intrinsic Value

SHRIRAMFIN • Financial Services
Current Stock Price
₹930.65
Primary Intrinsic Value
₹590.40
Market Cap
₹349.9K Cr
+34.5% Upside
Median Value
₹1252.02
Value Range
₹315 - ₹1861
Assessment
Trading Below Calculated Value
Safety Margin
25.7%

SHRIRAMFIN Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹590.40 ₹472.32 - ₹708.48 -36.6% EPS: ₹49.20, Sector P/E: 12x
Book Value Method asset ₹1201.49 ₹1081.34 - ₹1321.64 +29.1% Book Value/Share: ₹1501.86, P/B: 0.8x
Revenue Multiple Method revenue ₹1252.02 ₹1126.82 - ₹1377.22 +34.5% Revenue/Share: ₹1252.02, P/S: 1.0x
EBITDA Multiple Method earnings ₹1861.30 ₹1675.17 - ₹2047.43 +100.0% EBITDA: ₹34640.00Cr, EV/EBITDA: 5x
PEG Ratio Method growth ₹314.88 ₹283.39 - ₹346.37 -66.2% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹405.41 ₹364.87 - ₹445.95 -56.4% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹1861.30 ₹1675.17 - ₹2047.43 +100.0% ROE: 16.4%, P/E Multiple: 14x
Graham Defensive Method conservative ₹1289.40 ₹1160.46 - ₹1418.34 +38.5% EPS: ₹49.20, BVPS: ₹1501.86
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

SHRIRAMFIN Intrinsic Value Analysis

What is the intrinsic value of SHRIRAMFIN?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Shriram Finance (SHRIRAMFIN) is ₹1252.02 (median value). With the current market price of ₹930.65, this represents a +34.5% variance from our estimated fair value.

The valuation range spans from ₹314.88 to ₹1861.30, indicating ₹314.88 - ₹1861.30.

Is SHRIRAMFIN undervalued or overvalued?

Based on our multi-method analysis, Shriram Finance (SHRIRAMFIN) appears to be trading below calculated value by approximately 34.5%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 0.11 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Return on Equity 16.4% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 74.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.16x 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 ₹-43,652 Cr ₹-43,652 Cr Negative Cash Flow 3/10
March 2024 ₹-31,118 Cr ₹-31,332 Cr Negative Cash Flow 3/10
March 2023 ₹-17,625 Cr ₹-17,625 Cr Negative Cash Flow 3/10
March 2022 ₹-8,859 Cr ₹-8,876 Cr Negative Cash Flow 3/10
March 2021 ₹-4,239 Cr ₹-4,252 Cr Negative Cash Flow 3/10