Power Finance Corporation Limited

NSEI:PFC Stock Report

Market Cap: ₹1.6t

Power Finance Valuation

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

Below Fair Value: PFC (₹453.35) is trading below our estimate of fair value (₹514.56)

Significantly Below Fair Value: PFC 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 PFC?

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

The above table shows the Price to Earnings ratio for PFC. This is calculated by dividing PFC's market cap by their current earnings.
What is PFC's PE Ratio?
PE Ratio7.1x
Earnings₹211.97b
Market Cap₹1.56t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PFC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22x
RECLTD REC
8.7x11.9%₹1.4t
IRFC Indian Railway Finance
28.5x2.0%₹1.9t
IREDA Indian Renewable Energy Development Agency
34.3xn/a₹511.1b
HUDCO Housing and Urban Development
16.3x22.4%₹413.8b
PFC Power Finance
7.1x-0.4%₹1.6t

Price-To-Earnings vs Peers: PFC is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (22x).

Price to Earnings Ratio vs Industry

How does PFC'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
PFC 7.1xIndustry Avg. 24.9xNo. of Companies18PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PFC is good value based on its Price-To-Earnings Ratio (7.1x) compared to the Indian Diversified Financial industry average (24.9x).

Price to Earnings Ratio vs Fair Ratio

What is PFC'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.

PFC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.1x
Fair PE Ratio21.5x

Price-To-Earnings vs Fair Ratio: PFC is good value based on its Price-To-Earnings Ratio (7.1x) compared to the estimated Fair Price-To-Earnings Ratio (21.5x).

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 PFC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹453.35
₹613.89
+35.4%
6.3%₹680.00₹560.00n/a9
Nov ’25₹459.10
₹601.25
+31.0%
5.3%₹670.00₹560.00n/a8
Oct ’25₹494.10
₹607.14
+22.9%
4.9%₹670.00₹570.00n/a7
Sep ’25₹549.55
₹607.14
+10.5%
4.9%₹670.00₹570.00n/a7
Aug ’25₹542.85
₹558.33
+2.9%
6.7%₹620.00₹520.00n/a6
Jul ’25₹501.25
₹546.00
+8.9%
5.1%₹580.00₹520.00n/a5
Jun ’25₹492.45
₹546.00
+10.9%
5.1%₹580.00₹520.00n/a5
May ’25₹441.55
₹532.00
+20.5%
2.2%₹550.00₹520.00n/a5
Apr ’25₹401.20
₹492.00
+22.6%
16.6%₹550.00₹330.00n/a5
Mar ’25₹413.25
₹492.00
+19.1%
16.6%₹550.00₹330.00n/a5
Feb ’25₹445.75
₹460.00
+3.2%
14.2%₹500.00₹330.00n/a5
Jan ’25₹395.05
₹311.20
-21.2%
22.1%₹380.00₹167.20n/a6
Dec ’24₹365.15
₹290.40
-20.5%
28.1%₹380.00₹165.60n/a7
Nov ’24₹242.20
₹231.69
-4.3%
24.3%₹295.00₹165.60₹459.107
Oct ’24₹251.90
₹220.69
-12.4%
21.2%₹280.00₹165.60₹494.107
Sep ’24₹205.92
₹220.69
+7.2%
21.2%₹280.00₹165.60₹549.557
Aug ’24₹207.08
₹181.47
-12.4%
13.6%₹236.00₹165.60₹542.856
Jul ’24₹172.72
₹174.67
+1.1%
5.9%₹196.00₹165.60₹501.256
Jun ’24₹146.56
₹174.67
+19.2%
5.9%₹196.00₹165.60₹492.456
May ’24₹135.92
₹158.40
+16.5%
9.7%₹180.00₹129.60₹441.556
Apr ’24₹121.40
₹151.73
+25.0%
12.0%₹180.00₹128.00₹401.206
Mar ’24₹119.56
₹151.73
+26.9%
12.0%₹180.00₹128.00₹413.256
Feb ’24₹109.08
₹140.64
+28.9%
11.0%₹160.00₹118.40₹445.755
Jan ’24₹112.92
₹140.64
+24.5%
11.0%₹160.00₹118.40₹395.055
Dec ’23₹110.80
₹140.64
+26.9%
11.0%₹160.00₹118.40₹365.155
Nov ’23₹92.72
₹139.20
+50.1%
10.4%₹160.00₹118.40₹242.206

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

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