Tamilnad Mercantile Bank Intrinsic Value

TMB • Banks
Current Stock Price
₹672.15
Primary Intrinsic Value
₹951.60
Market Cap
₹106.2K Cr
-1.6% Downside
Median Value
₹661.47
Value Range
₹408 - ₹1633
Assessment
Trading Near Calculated Value
Safety Margin
-1.6%

TMB Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹951.60 ₹761.28 - ₹1141.92 +41.6% EPS: ₹79.30, Sector P/E: 12x
Book Value Method asset ₹456.15 ₹410.53 - ₹501.77 -32.1% Book Value/Share: ₹570.19, P/B: 0.8x
Revenue Multiple Method revenue ₹408.04 ₹367.24 - ₹448.84 -39.3% Revenue/Share: ₹408.04, P/S: 1.0x
EBITDA Multiple Method earnings ₹534.81 ₹481.33 - ₹588.29 -20.4% EBITDA: ₹1690.00Cr, EV/EBITDA: 5x
Simple DCF (5Y) dcf ₹1632.58 ₹1306.06 - ₹1959.10 +142.9% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹525.80 ₹473.22 - ₹578.38 -21.8% EPS Growth: 8.3%, Fair P/E: 6.6x
Growth Adjusted P/E growth ₹661.47 ₹595.32 - ₹727.62 -1.6% Revenue Growth: 8.5%, Adj P/E: 8.3x
ROE Based Valuation profitability ₹953.92 ₹858.53 - ₹1049.31 +41.9% ROE: 13.9%, P/E Multiple: 12x
Graham Defensive Method conservative ₹1008.64 ₹907.78 - ₹1109.50 +50.1% EPS: ₹79.30, BVPS: ₹570.19
Method Types: Earnings Asset DCF Growth Dividend Conservative

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

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 ₹661.47 (median value). With the current market price of ₹672.15, this represents a -1.6% variance from our estimated fair value.

The valuation range spans from ₹408.04 to ₹1632.58, indicating ₹408.04 - ₹1632.58.

Is TMB undervalued or overvalued?

Based on our multi-method analysis, Tamilnad Mercantile Bank (TMB) appears to be trading near calculated value by approximately 1.6%.

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
Return on Equity 13.9% Industry Standard: 15%+ Above 10% Measures shareholder return efficiency
Operating Margin 73.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.10x Industry Standard: 1.0x+ Below 0.5x Measures asset utilization efficiency

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