Tamilnad Mercantile Bank Intrinsic Value
TMB Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹920.40 | ₹736.32 - ₹1104.48 | +63.0% | EPS: ₹76.70, Sector P/E: 12x |
| Book Value Method | asset | ₹456.15 | ₹410.53 - ₹501.77 | -19.2% | Book Value/Share: ₹570.19, P/B: 0.8x |
| Revenue Multiple Method | revenue | ₹398.80 | ₹358.92 - ₹438.68 | -29.4% | Revenue/Share: ₹398.80, P/S: 1.0x |
| EBITDA Multiple Method | earnings | ₹225.90 | ₹203.31 - ₹248.49 | -60.0% | EBITDA: ₹1628.00Cr, EV/EBITDA: 5x |
| Simple DCF (5Y) | dcf | ₹1411.88 | ₹1129.50 - ₹1694.26 | +150.0% | CF Growth: 15.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹453.41 | ₹408.07 - ₹498.75 | -19.7% | EPS Growth: 7.4%, Fair P/E: 5.9x |
| Growth Adjusted P/E | growth | ₹637.88 | ₹574.09 - ₹701.67 | +12.9% | Revenue Growth: 7.9%, Adj P/E: 8.3x |
| ROE Based Valuation | profitability | ₹922.78 | ₹830.50 - ₹1015.06 | +63.4% | ROE: 13.5%, P/E Multiple: 12x |
| Graham Defensive Method | conservative | ₹991.97 | ₹892.77 - ₹1091.17 | +75.6% | EPS: ₹76.70, BVPS: ₹570.19 |
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Valuation Comparison Chart
TMB Intrinsic Value Analysis
What is the intrinsic value of TMB?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Tamilnad Mercantile Bank (TMB) is ₹637.88 (median value). With the current market price of ₹564.75, this represents a +12.9% variance from our estimated fair value.
The valuation range spans from ₹225.90 to ₹1411.88, indicating ₹225.90 - ₹1411.88.
Is TMB undervalued or overvalued?
Based on our multi-method analysis, Tamilnad Mercantile Bank (TMB) appears to be trading below median value by approximately 12.9%.
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 |
| Debt to Equity Ratio | 7.38 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 13.5% | Industry Standard: 15%+ | Above 10% | Measures shareholder return efficiency |
| Operating Margin | 72.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.09x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
Related Pages for Tamilnad Mercantile Bank
Additional stock information and data for TMB
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹1,899 Cr | ₹1,850 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹-611 Cr | ₹-661 Cr | Negative Cash Flow | 3/10 |
| March 2023 | ₹-1,270 Cr | ₹-1,315 Cr | Negative Cash Flow | 3/10 |
| March 2022 | ₹1,325 Cr | ₹1,272 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹-670 Cr | ₹-689 Cr | Negative Cash Flow | 3/10 |