Varun Beverages Intrinsic Value

VBL • Beverages
Current Stock Price
₹500.90
Primary Intrinsic Value
₹150.27
Market Cap
₹338.6K Cr
-52.3% Downside
Median Value
₹238.82
Value Range
₹150 - ₹679
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

VBL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹150.27 ₹120.22 - ₹180.32 -70.0% EPS: ₹8.76, Sector P/E: 12x
Book Value Method asset ₹247.63 ₹222.87 - ₹272.39 -50.6% Book Value/Share: ₹247.63, P/B: 1.0x
Revenue Multiple Method revenue ₹238.82 ₹214.94 - ₹262.70 -52.3% Revenue/Share: ₹298.52, P/S: 0.8x
EBITDA Multiple Method earnings ₹442.62 ₹398.36 - ₹486.88 -11.6% EBITDA: ₹5176.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹679.37 ₹543.50 - ₹815.24 +35.6% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹150.27 ₹135.24 - ₹165.30 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹150.27 ₹135.24 - ₹165.30 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹617.16 ₹555.44 - ₹678.88 +23.2% ROE: 17.8%, P/E Multiple: 14x
Graham Defensive Method conservative ₹220.93 ₹198.84 - ₹243.02 -55.9% EPS: ₹8.76, BVPS: ₹247.63
Method Types: Earnings Asset DCF Growth Dividend Conservative

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

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 ₹500.90, this represents a -52.3% variance from our estimated fair value.

The valuation range spans from ₹150.27 to ₹679.37, indicating ₹150.27 - ₹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 52.3%.

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

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