Sterling Tools Intrinsic Value

STERTOOLS • Automobiles
Current Stock Price
₹214.45
Primary Intrinsic Value
₹228.00
Market Cap
₹150.1 Cr
+100.0% Upside
Median Value
₹428.90
Value Range
₹122 - ₹553
Assessment
Trading Below Calculated Value
Safety Margin
50.0%

STERTOOLS Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹228.00 ₹182.40 - ₹273.60 +6.3% EPS: ₹19.00, Sector P/E: 12x
Book Value Method asset ₹536.12 ₹482.51 - ₹589.73 +150.0% Book Value/Share: ₹714.29, P/B: 1.0x
Revenue Multiple Method revenue ₹428.90 ₹386.01 - ₹471.79 +100.0% Revenue/Share: ₹1257.14, P/S: 0.8x
EBITDA Multiple Method earnings ₹428.90 ₹386.01 - ₹471.79 +100.0% EBITDA: ₹144.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹536.12 ₹428.90 - ₹643.34 +150.0% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹121.60 ₹109.44 - ₹133.76 -43.3% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹156.56 ₹140.90 - ₹172.22 -27.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹428.90 ₹386.01 - ₹471.79 +100.0% ROE: 13.6%, P/E Multiple: 12x
Graham Defensive Method conservative ₹552.59 ₹497.33 - ₹607.85 +157.7% EPS: ₹19.00, BVPS: ₹714.29
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

STERTOOLS Intrinsic Value Analysis

What is the intrinsic value of STERTOOLS?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Sterling Tools (STERTOOLS) is ₹428.90 (median value). With the current market price of ₹214.45, this represents a +100.0% variance from our estimated fair value.

The valuation range spans from ₹121.60 to ₹552.59, indicating ₹121.60 - ₹552.59.

Is STERTOOLS undervalued or overvalued?

Based on our multi-method analysis, Sterling Tools (STERTOOLS) appears to be trading below calculated value by approximately 100.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 4.94 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 13.6% Industry Standard: 15%+ Above 10% Measures shareholder return efficiency
Operating Margin 11.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 1.11x 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 ₹124 Cr ₹62 Cr Positive Free Cash Flow 7/10
March 2024 ₹102 Cr ₹78 Cr Positive Free Cash Flow 8/10
March 2023 ₹63 Cr ₹37 Cr Positive Free Cash Flow 8/10
March 2022 ₹25 Cr ₹6 Cr Positive Free Cash Flow 7/10
March 2021 ₹16 Cr ₹-9 Cr Positive Operating Cash Flow 6/10