Indian Railway Finance Corporation Limited

NSEI:IRFC Stock Report

Market Cap: ₹1.9t

Indian Railway Finance Valuation

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

Below Fair Value: IRFC (₹141.67) is trading above our estimate of fair value (₹18.74)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IRFC. This is calculated by dividing IRFC's market cap by their current earnings.
What is IRFC's PE Ratio?
PE Ratio28.5x
Earnings₹65.06b
Market Cap₹1.90t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IRFC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.6x
PFC Power Finance
7.1x-0.4%₹1.6t
8.7x11.9%₹1.4t
IREDA Indian Renewable Energy Development Agency
34.3xn/a₹511.1b
HUDCO Housing and Urban Development
16.3x22.4%₹413.8b
IRFC Indian Railway Finance
28.5x2.0%₹1.9t

Price-To-Earnings vs Peers: IRFC is expensive based on its Price-To-Earnings Ratio (28.5x) compared to the peer average (16.6x).


Price to Earnings Ratio vs Industry

How does IRFC's PE Ratio compare vs other companies in the IN Diversified Financial Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
531310 Available Finance
2.5xn/aUS$40.36m
538732 Vibrant Global Capital
4.9xn/aUS$17.99m
539217 Srestha Finvest
4.9xn/aUS$12.04m
531735 Prism Finance
2.6xn/aUS$2.31m
IRFC 28.5xIndustry Avg. 24.9xNo. of Companies18PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IRFC is expensive based on its Price-To-Earnings Ratio (28.5x) compared to the Indian Diversified Financial industry average (24.9x).


Price to Earnings Ratio vs Fair Ratio

What is IRFC'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.

IRFC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.5x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: IRFC is expensive based on its Price-To-Earnings Ratio (28.5x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).


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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