Tamilnad Mercantile Bank Intrinsic Value

TMB • Banks
Current Stock Price
₹564.75
Primary Intrinsic Value
₹920.40
Market Cap
₹8923 Cr
+12.9% Upside
Median Value
₹637.88
Value Range
₹226 - ₹1412
Assessment
Trading Below Median Value
Safety Margin
11.5%

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
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 ₹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

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