Veto Switchgears and Cables Limited

NSEI:VETO Stock Report

Market Cap: ₹2.5b

Veto Switchgears and Cables Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 VETO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VETO (₹128.89) is trading below our estimate of fair value (₹232.62)

Significantly Below Fair Value: VETO is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for VETO. This is calculated by dividing VETO's market cap by their current earnings.
What is VETO's PE Ratio?
PE Ratio13.7x
Earnings₹179.52m
Market Cap₹2.46b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VETO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average44.6x
DPEL Divine Power Energy
29.2xn/a₹2.5b
GOLDSTAR Goldstar Power
92.6xn/a₹2.7b
504080 JSL Industries
35.2xn/a₹2.5b
CORDSCABLE Cords Cable Industries
21.5xn/a₹2.5b
VETO Veto Switchgears and Cables
13.7xn/a₹2.5b

Price-To-Earnings vs Peers: VETO is good value based on its Price-To-Earnings Ratio (13.7x) compared to the peer average (44.6x).

Price to Earnings Ratio vs Industry

How does VETO's PE Ratio compare vs other companies in the IN Electrical Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
504058 Indo National
2.7xn/aUS$45.01m
533203 Tarapur Transformers
4.5xn/aUS$7.22m
No more companies available in this PE range
VETO 13.7xIndustry Avg. 46.0xNo. of Companies12PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VETO is good value based on its Price-To-Earnings Ratio (13.7x) compared to the Indian Electrical industry average (46x).

Price to Earnings Ratio vs Fair Ratio

What is VETO'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.

VETO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate VETO's Price-To-Earnings Fair Ratio for valuation analysis.

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.

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