Reliance Industries Valuation

Q: What is the Fair Price of RIGD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

RIGD ($60) is trading above our estimate of [[fair value]] ($53.72)

Is RIGD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RIGD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RIGD ($60) is trading above our estimate of fair value ($53.72)

Significantly Below Fair Value: RIGD is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RIGD?

Key metric: As RIGD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RIGD. This is calculated by dividing RIGD's market cap by their current earnings.
What is RIGD's PE Ratio?
PE Ratio	23.9x
Earnings	₹679.17b
Market Cap	₹16.24t

RIGD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	12.2x
PEG Ratio	1.7x

Price to Earnings Ratio vs Peers

How does RIGD's PE Ratio compare to its peers?

The above table shows the PE ratio for RIGD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	17.9x
SHEL Shell	12.6x	4.9%	UK£154.9b
BP. BP	28.9x	29.3%	UK£61.6b
ADNOCGAS ADNOC Gas	14.6x	0.2%	د.إ265.6b
PSX Phillips 66	15.4x	15.6%	US$51.9b
RIGD Reliance Industries	23.9x	13.8%	US$16.2t

Price-To-Earnings vs Peers: RIGD is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the peer average (17.9x).

Price to Earnings Ratio vs Industry

How does RIGD's PE Ratio compare vs other companies in the GB Oil and Gas Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap
ROSN Rosneft Oil	1.5x	n/a	US$21.03b
INDI Indus Gas	1x	n/a	US$20.67m

No more companies available in this PE range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: RIGD is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the UK Oil and Gas industry average (9.3x).

Price to Earnings Ratio vs Fair Ratio

What is RIGD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RIGD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	23.9x
Fair PE Ratio	23.6x

Price-To-Earnings vs Fair Ratio: RIGD is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the estimated Fair Price-To-Earnings Ratio (23.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.