RITES Valuation

Q: What is the Fair Price of 541556 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

541556 (₹272.9) is trading below our estimate of [[fair value]] (₹307.38)

Is 541556 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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 541556 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 541556 (₹272.9) is trading below our estimate of fair value (₹307.38)

Significantly Below Fair Value: 541556 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 541556?

Key metric: As 541556 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 541556. This is calculated by dividing 541556's market cap by their current earnings.
What is 541556's PE Ratio?
PE Ratio	32.9x
Earnings	₹3.98b
Market Cap	₹131.16b

541556 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	5.3x
Enterprise Value/EBITDA	22.5x
PEG Ratio	1.5x

Price to Earnings Ratio vs Peers

How does 541556's PE Ratio compare to its peers?

The above table shows the PE ratio for 541556 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	62.4x
EMUDHRA eMudhra	88.7x	37.4%	₹71.8b
LATENTVIEW Latent View Analytics	55.1x	n/a	₹94.0b
LTTS L&T Technology Services	41.8x	13.4%	₹547.2b
SAGILITY Sagility India	64.1x	n/a	₹133.5b
541556 RITES	32.9x	21.9%	₹131.2b

Price-To-Earnings vs Peers: 541556 is good value based on its Price-To-Earnings Ratio (32.9x) compared to the peer average (62.4x).

Price to Earnings Ratio vs Industry

How does 541556's PE Ratio compare vs other companies in the IN Professional Services Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
SECURCRED SecUR Credentials	2.9x	n/a	US$1.63m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 541556 is good value based on its Price-To-Earnings Ratio (32.9x) compared to the Indian Professional Services industry average (34.7x).

Price to Earnings Ratio vs Fair Ratio

What is 541556'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.

541556 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	32.9x
Fair PE Ratio	44.2x

Price-To-Earnings vs Fair Ratio: 541556 is good value based on its Price-To-Earnings Ratio (32.9x) compared to the estimated Fair Price-To-Earnings Ratio (44.2x).

Analyst Price Targets

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

The above table shows the analyst 541556 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	₹272.90	₹333.50 +22.2%	2.7%	₹347.00	₹325.00	n/a	4
Nov ’25	₹302.40	₹459.25 +51.9%	36.2%	₹744.00	₹336.00	n/a	4
Oct ’25	₹334.15	₹354.38 +6.1%	8.7%	₹403.50	₹319.00	n/a	4
Sep ’25	₹324.60	₹354.38 +9.2%	8.7%	₹403.50	₹319.00	n/a	4
Aug ’25	₹360.85	₹372.88 +3.3%	11.8%	₹427.50	₹319.00	n/a	4
Jul ’25	₹345.85	₹377.25 +9.1%	10.4%	₹427.50	₹336.50	n/a	4
Jun ’25	₹349.08	₹368.75 +5.6%	8.1%	₹403.50	₹336.50	n/a	4
May ’25	₹342.13	₹364.38 +6.5%	9.7%	₹403.50	₹319.00	n/a	4
Apr ’25	₹344.05	₹364.38 +5.9%	9.7%	₹403.50	₹319.00	n/a	4
Mar ’25	₹394.48	₹364.38 -7.6%	9.7%	₹403.50	₹319.00	n/a	4
Feb ’25	₹351.43	₹252.75 -28.1%	18.4%	₹324.50	₹211.50	n/a	4
Jan ’25	₹251.10	₹230.90 -8.0%	22.5%	₹310.50	₹157.50	n/a	5
Dec ’24	₹233.83	₹230.90 -1.3%	22.5%	₹310.50	₹157.50	n/a	5
Nov ’24	₹221.25	₹231.30 +4.5%	22.6%	₹310.50	₹157.50	₹302.40	5
Oct ’24	₹246.00	₹242.80 -1.3%	20.5%	₹310.50	₹157.50	₹334.15	5
Sep ’24	₹255.13	₹224.20 -12.1%	16.3%	₹265.00	₹157.50	₹324.60	5
Aug ’24	₹232.70	₹224.20 -3.7%	16.3%	₹265.00	₹157.50	₹360.85	5
Jul ’24	₹186.03	₹180.50 -3.0%	10.8%	₹206.00	₹157.50	₹345.85	5
Jun ’24	₹190.78	₹180.50 -5.4%	10.8%	₹206.00	₹157.50	₹349.08	5
May ’24	₹192.63	₹183.13 -4.9%	8.8%	₹206.00	₹161.00	₹342.13	4
Apr ’24	₹177.33	₹183.13 +3.3%	8.8%	₹206.00	₹161.00	₹344.05	4
Mar ’24	₹167.38	₹183.13 +9.4%	8.8%	₹206.00	₹161.00	₹394.48	4
Feb ’24	₹170.08	₹191.17 +12.4%	6.0%	₹203.00	₹175.50	₹351.43	3
Jan ’24	₹169.80	₹174.75 +2.9%	17.4%	₹203.00	₹125.00	₹251.10	4
Dec ’23	₹186.33	₹174.75 -6.2%	17.4%	₹203.00	₹125.00	₹233.83	4
Nov ’23	₹191.33	₹151.75 -20.7%	11.1%	₹167.00	₹125.00	₹221.25	4

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.