Steel Authority of India Intrinsic Value

SAIL • Metals & Mining
Current Stock Price
₹164.41
Primary Intrinsic Value
₹49.32
Market Cap
₹679.2K Cr
-13.3% Downside
Median Value
₹142.60
Value Range
₹49 - ₹223
Assessment
Trading Above Median Value
Safety Margin
-15.3%

SAIL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹49.32 ₹39.46 - ₹59.18 -70.0% EPS: ₹4.04, Sector P/E: 12x
Book Value Method asset ₹142.60 ₹128.34 - ₹156.86 -13.3% Book Value/Share: ₹142.60, P/B: 1.0x
Revenue Multiple Method revenue ₹209.21 ₹188.29 - ₹230.13 +27.2% Revenue/Share: ₹261.52, P/S: 0.8x
EBITDA Multiple Method earnings ₹144.89 ₹130.40 - ₹159.38 -11.9% EBITDA: ₹9976.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹222.80 ₹178.24 - ₹267.36 +35.5% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹49.32 ₹44.39 - ₹54.25 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹49.32 ₹44.39 - ₹54.25 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
Graham Defensive Method conservative ₹113.85 ₹102.47 - ₹125.23 -30.8% EPS: ₹4.04, BVPS: ₹142.60
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

SAIL Intrinsic Value Analysis

What is the intrinsic value of SAIL?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Steel Authority of India (SAIL) is ₹142.60 (median value). With the current market price of ₹164.41, this represents a -13.3% variance from our estimated fair value.

The valuation range spans from ₹49.32 to ₹222.80, indicating ₹49.32 - ₹222.80.

Is SAIL undervalued or overvalued?

Based on our multi-method analysis, Steel Authority of India (SAIL) appears to be trading above median value by approximately 13.3%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 1.34 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Return on Equity 2.8% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 8.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 0.79x 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 ₹9,914 Cr ₹7,280 Cr Positive Free Cash Flow 8/10
March 2024 ₹2,911 Cr ₹781 Cr Positive Free Cash Flow 7/10
March 2023 ₹-5,290 Cr ₹-6,976 Cr Negative Cash Flow 3/10
March 2022 ₹30,987 Cr ₹28,999 Cr Positive Free Cash Flow 8/10
March 2021 ₹23,430 Cr ₹21,783 Cr Positive Free Cash Flow 8/10