Reliance Industries Limited

NSEI:RELIANCE Stock Report

Market Cap: ₹19.0t

Reliance Industries Valuation

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

Below Fair Value: RELIANCE (₹2985.7) is trading above our estimate of fair value (₹1424.99)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RELIANCE 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/Revenue2.5x
Enterprise Value/EBITDA14.4x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RELIANCE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.5x
IOC Indian Oil
4.9x-31.0%₹2.3t
BPCL Bharat Petroleum
4.5x-40.8%₹1.3t
HINDPETRO Hindustan Petroleum
4x-27.5%₹668.3b
500109 Mangalore Refinery and Petrochemicals
8.8x-23.5%₹385.0b
RELIANCE Reliance Industries
27.1x12.7%₹19.0t

Price-To-Earnings vs Peers: RELIANCE is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the peer average (5.5x).


Price to Earnings Ratio vs Industry

How does RELIANCE's PE Ratio compare vs other companies in the IN Oil and Gas Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RELIANCE is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the Indian Oil and Gas industry average (11.4x).


Price to Earnings Ratio vs Fair Ratio

What is RELIANCE'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.

RELIANCE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.1x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: RELIANCE is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).


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 RELIANCE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹2,985.70
₹2,967.38
-0.6%
9.4%₹3,420.00₹2,200.00n/a34
Mar ’25₹2,984.25
₹2,937.82
-1.6%
8.9%₹3,299.00₹2,200.00n/a34
Feb ’25₹2,853.30
₹2,934.74
+2.9%
8.7%₹3,299.00₹2,200.00n/a35
Jan ’25₹2,590.25
₹2,774.18
+7.1%
9.4%₹3,330.00₹2,100.00n/a34
Dec ’24₹2,394.30
₹2,770.06
+15.7%
9.4%₹3,330.00₹2,100.00n/a34
Nov ’24₹2,297.40
₹2,775.31
+20.8%
9.2%₹3,330.00₹2,100.00n/a35
Oct ’24₹2,345.00
₹2,796.49
+19.3%
9.1%₹3,270.00₹2,100.00n/a35
Sep ’24₹2,412.65
₹2,796.11
+15.9%
9.1%₹3,270.00₹2,100.00n/a35
Aug ’24₹2,513.20
₹2,792.38
+11.1%
9.3%₹3,270.00₹2,100.00n/a34
Jul ’24₹2,550.25
₹2,790.06
+9.4%
8.9%₹3,270.00₹2,100.00n/a31
Jun ’24₹2,463.25
₹2,808.94
+14.0%
9.5%₹3,369.00₹2,100.00n/a32
May ’24₹2,420.50
₹2,823.56
+16.7%
9.6%₹3,369.00₹2,050.00n/a34
Apr ’24₹2,331.05
₹2,856.64
+22.5%
9.5%₹3,369.00₹2,050.00n/a33
Mar ’24₹2,343.90
₹2,866.88
+22.3%
9.6%₹3,369.00₹2,000.00₹2,984.2534
Feb ’24₹2,339.90
₹2,864.28
+22.4%
10.0%₹3,369.00₹2,000.00₹2,853.3032
Jan ’24₹2,547.20
₹2,871.77
+12.7%
10.2%₹3,369.00₹2,000.00₹2,590.2531
Dec ’23₹2,723.30
₹2,856.45
+4.9%
10.4%₹3,369.00₹2,000.00₹2,394.3031
Nov ’23₹2,529.85
₹2,852.90
+12.8%
10.3%₹3,369.00₹2,000.00₹2,297.4031
Oct ’23₹2,377.75
₹2,893.42
+21.7%
10.1%₹3,369.00₹2,000.00₹2,345.0033
Sep ’23₹2,560.40
₹2,878.18
+12.4%
10.1%₹3,369.00₹2,000.00₹2,412.6534
Aug ’23₹2,574.85
₹2,874.94
+11.7%
10.1%₹3,369.00₹2,000.00₹2,513.2034
Jul ’23₹2,408.70
₹2,917.38
+21.1%
10.9%₹3,369.00₹1,850.00₹2,550.2534
Jun ’23₹2,633.50
₹2,815.76
+6.9%
13.1%₹3,270.00₹1,540.00₹2,463.2533
May ’23₹2,790.25
₹2,777.39
-0.5%
13.3%₹3,270.00₹1,540.00₹2,420.5033
Apr ’23₹2,655.85
₹2,708.81
+2.0%
12.3%₹3,080.00₹1,540.00₹2,331.0532
Mar ’23₹2,359.55
₹2,703.16
+14.6%
12.4%₹3,080.00₹1,540.00₹2,343.9031

Analyst Forecast: Target price is lower than the current share price.


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