Sonata Software Intrinsic Value

SONATSOFTW • Information Technology
Current Stock Price
₹351.65
Primary Intrinsic Value
₹207.84
Market Cap
₹984.6 Cr
+73.3% Upside
Median Value
₹609.29
Value Range
₹111 - ₹879
Assessment
Trading Below Calculated Value
Safety Margin
42.3%

SONATSOFTW Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹207.84 ₹166.27 - ₹249.41 -40.9% EPS: ₹17.32, Sector P/E: 12x
Book Value Method asset ₹609.29 ₹548.36 - ₹670.22 +73.3% Book Value/Share: ₹609.29, P/B: 1.0x
Revenue Multiple Method revenue ₹703.30 ₹632.97 - ₹773.63 +100.0% Revenue/Share: ₹3072.86, P/S: 0.8x
EBITDA Multiple Method earnings ₹703.30 ₹632.97 - ₹773.63 +100.0% EBITDA: ₹816.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹879.12 ₹703.30 - ₹1054.94 +150.0% CF Growth: 9.8%, Discount: 15%
PEG Ratio Method growth ₹110.85 ₹99.77 - ₹121.94 -68.5% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹142.72 ₹128.45 - ₹156.99 -59.4% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹703.30 ₹632.97 - ₹773.63 +100.0% ROE: 28.1%, P/E Multiple: 16x
Graham Defensive Method conservative ₹487.28 ₹438.55 - ₹536.01 +38.6% EPS: ₹17.32, BVPS: ₹609.29
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

SONATSOFTW Intrinsic Value Analysis

What is the intrinsic value of SONATSOFTW?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Sonata Software (SONATSOFTW) is ₹609.29 (median value). With the current market price of ₹351.65, this represents a +73.3% variance from our estimated fair value.

The valuation range spans from ₹110.85 to ₹879.12, indicating ₹110.85 - ₹879.12.

Is SONATSOFTW undervalued or overvalued?

Based on our multi-method analysis, Sonata Software (SONATSOFTW) appears to be trading below calculated value by approximately 73.3%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 6.58 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 2.79 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 28.1% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 8.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 1.81x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹644 Cr ₹426 Cr Positive Free Cash Flow 8/10
March 2024 ₹281 Cr ₹255 Cr Positive Free Cash Flow 8/10
March 2023 ₹268 Cr ₹-118 Cr Positive Operating Cash Flow 6/10
March 2022 ₹450 Cr ₹407 Cr Positive Free Cash Flow 8/10
March 2021 ₹443 Cr ₹387 Cr Positive Free Cash Flow 8/10