Varun Beverages Intrinsic Value
VBL Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹152.91 | ₹122.33 - ₹183.49 | -70.0% | EPS: ₹8.76, Sector P/E: 12x |
| Book Value Method | asset | ₹247.63 | ₹222.87 - ₹272.39 | -51.4% | Book Value/Share: ₹247.63, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹238.82 | ₹214.94 - ₹262.70 | -53.1% | Revenue/Share: ₹298.52, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹442.62 | ₹398.36 - ₹486.88 | -13.2% | EBITDA: ₹5176.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹679.37 | ₹543.50 - ₹815.24 | +33.3% | CF Growth: 15.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹152.91 | ₹137.62 - ₹168.20 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹152.91 | ₹137.62 - ₹168.20 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹617.16 | ₹555.44 - ₹678.88 | +21.1% | ROE: 17.8%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹220.93 | ₹198.84 - ₹243.02 | -56.7% | EPS: ₹8.76, BVPS: ₹247.63 |
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Valuation Comparison Chart
VBL Intrinsic Value Analysis
What is the intrinsic value of VBL?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Varun Beverages (VBL) is ₹238.82 (median value). With the current market price of ₹509.70, this represents a -53.1% variance from our estimated fair value.
The valuation range spans from ₹152.91 to ₹679.37, indicating ₹152.91 - ₹679.37.
Is VBL undervalued or overvalued?
Based on our multi-method analysis, Varun Beverages (VBL) appears to be trading above calculated value by approximately 53.1%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 4.18 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 1.38 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 17.8% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 23.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.87x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for Varun Beverages
Additional stock information and data for VBL
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2024 | ₹3,381 Cr | ₹1,226 Cr | Positive Free Cash Flow | 7/10 |
| March 2023 | ₹2,391 Cr | ₹747 Cr | Positive Free Cash Flow | 7/10 |
| March 2022 | ₹1,790 Cr | ₹906 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹1,231 Cr | ₹727 Cr | Positive Free Cash Flow | 8/10 |
| March 2020 | ₹1,012 Cr | ₹776 Cr | Positive Free Cash Flow | 8/10 |