Vedanta Intrinsic Value
VEDL Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹221.28 | ₹177.02 - ₹265.54 | -64.4% | EPS: ₹18.44, Sector P/E: 12x |
| Book Value Method | asset | ₹1374.76 | ₹1237.28 - ₹1512.24 | +121.0% | Book Value/Share: ₹1374.76, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹1244.40 | ₹1119.96 - ₹1368.84 | +100.0% | Revenue/Share: ₹4073.04, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹1244.40 | ₹1119.96 - ₹1368.84 | +100.0% | EBITDA: ₹37100.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹1555.50 | ₹1244.40 - ₹1866.60 | +150.0% | CF Growth: 13.3%, Discount: 15% |
| PEG Ratio Method | growth | ₹186.66 | ₹167.99 - ₹205.33 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹186.66 | ₹167.99 - ₹205.33 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹1244.40 | ₹1119.96 - ₹1368.84 | +100.0% | ROE: 25.9%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹755.24 | ₹679.72 - ₹830.76 | +21.4% | EPS: ₹18.44, BVPS: ₹1374.76 |
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Valuation Comparison Chart
VEDL Intrinsic Value Analysis
What is the intrinsic value of VEDL?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Vedanta (VEDL) is ₹1244.40 (median value). With the current market price of ₹622.20, this represents a +100.0% variance from our estimated fair value.
The valuation range spans from ₹186.66 to ₹1555.50, indicating ₹186.66 - ₹1555.50.
Is VEDL undervalued or overvalued?
Based on our multi-method analysis, Vedanta (VEDL) appears to be trading below calculated value by approximately 100.0%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 0.68 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 3.78 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 25.9% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 22.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.78x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for Vedanta
Additional stock information and data for VEDL
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹39,562 Cr | ₹29,983 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹35,654 Cr | ₹28,816 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹33,065 Cr | ₹32,731 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹34,963 Cr | ₹33,842 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹23,980 Cr | ₹20,641 Cr | Positive Free Cash Flow | 8/10 |