Covance Softsol Intrinsic Value

COVANCE • Information Technology
Current Stock Price
₹123.04
Primary Intrinsic Value
₹238.08
Market Cap
₹184.6 Cr
+32.9% Upside
Median Value
₹163.48
Value Range
₹61 - ₹246
Assessment
Trading Below Calculated Value
Safety Margin
24.7%

COVANCE Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹238.08 ₹190.46 - ₹285.70 +93.5% EPS: ₹19.84, Sector P/E: 12x
Book Value Method asset ₹60.67 ₹54.60 - ₹66.74 -50.7% Book Value/Share: ₹60.67, P/B: 1.0x
Revenue Multiple Method revenue ₹76.80 ₹69.12 - ₹84.48 -37.6% Revenue/Share: ₹96.00, P/S: 0.8x
EBITDA Multiple Method earnings ₹176.00 ₹158.40 - ₹193.60 +43.0% EBITDA: ₹44.00Cr, EV/EBITDA: 6x
PEG Ratio Method growth ₹126.98 ₹114.28 - ₹139.68 +3.2% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹163.48 ₹147.13 - ₹179.83 +32.9% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹246.08 ₹221.47 - ₹270.69 +100.0% ROE: 35.2%, P/E Multiple: 16x
Graham Defensive Method conservative ₹121.33 ₹109.20 - ₹133.46 -1.4% EPS: ₹19.84, BVPS: ₹60.67
Method Types: Earnings Asset DCF Growth Dividend Conservative

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

Valuation Comparison Chart

COVANCE Intrinsic Value Analysis

What is the intrinsic value of COVANCE?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Covance Softsol (COVANCE) is ₹163.48 (median value). With the current market price of ₹123.04, this represents a +32.9% variance from our estimated fair value.

The valuation range spans from ₹60.67 to ₹246.08, indicating ₹60.67 - ₹246.08.

Is COVANCE undervalued or overvalued?

Based on our multi-method analysis, Covance Softsol (COVANCE) appears to be trading below calculated value by approximately 32.9%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 2.23 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 2.15 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 35.2% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 26.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.73x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹18 Cr ₹14 Cr Positive Free Cash Flow 8/10
March 2024 ₹-10 Cr ₹-10 Cr Negative Cash Flow 3/10