Cholamandalam Financial Holdings Valuation

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

CHOLAHLDNG (₹1507.9) is trading above our estimate of [[fair value]] (₹475.89)

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: CHOLAHLDNG (₹1507.9) is trading above our estimate of fair value (₹475.89)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CHOLAHLDNG. This is calculated by dividing CHOLAHLDNG's market cap by their current earnings.
What is CHOLAHLDNG's PE Ratio?
PE Ratio	13.8x
Earnings	₹20.54b
Market Cap	₹291.03b

CHOLAHLDNG 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CHOLAHLDNG 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	17.1x
M&MFIN Mahindra & Mahindra Financial Services	14.5x	17.0%	₹316.4b
SUNDARMFIN Sundaram Finance	29.1x	13.3%	₹455.9b
FIVESTAR Five-Star Business Finance	19.3x	16.0%	₹187.7b
531213 Manappuram Finance	5.6x	11.8%	₹127.1b
CHOLAHLDNG Cholamandalam Financial Holdings	13.8x	n/a	₹283.1b

Price-To-Earnings vs Peers: CHOLAHLDNG is good value based on its Price-To-Earnings Ratio (13.8x) compared to the peer average (17.1x).

Price to Earnings Ratio vs Industry

How does CHOLAHLDNG's PE Ratio compare vs other companies in the IN Consumer Finance Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
523384 Maha Rashtra Apex	0.7x	n/a	US$27.23m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: CHOLAHLDNG is good value based on its Price-To-Earnings Ratio (13.8x) compared to the Indian Consumer Finance industry average (21.1x).

Price to Earnings Ratio vs Fair Ratio

What is CHOLAHLDNG'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.

CHOLAHLDNG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CHOLAHLDNG'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.

Discover undervalued companies

Manappuram Finance

₹131.1b

A gold loan non-banking financial company, provides retail credit products and financial services in India.

531213

₹150.20

-3.5%

-1.5%

Aditya Birla Capital

₹481.4b

Through its subsidiaries, provides various financial products and services in India and internationally.

ABCAPITAL

₹183.01

-3.1%

7.0%

Five-Star Business Finance

₹186.1b

Operates as a non-banking financial company in India.

FIVESTAR

₹641.75

-0.9%

-20.1%