ITC Limited

NSEI:ITC Stock Report

Market Cap: ₹5.8t

ITC Valuation

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

Below Fair Value: ITC (₹467.35) is trading above our estimate of fair value (₹321.29)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ITC. This is calculated by dividing ITC's market cap by their current earnings.
What is ITC's PE Ratio?
PE Ratio28.5x
Earnings₹205.40b
Market Cap₹5.84t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ITC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average50.9x
500163 Godfrey Phillips India
34.5x25.5%₹312.6b
509966 VST Industries
22.2x15.8%₹53.4b
500790 Nestlé India
66.1x9.2%₹2.1t
VBL Varun Beverages
80.6x22.5%₹2.0t
ITC ITC
28.5x9.6%₹5.8t

Price-To-Earnings vs Peers: ITC is good value based on its Price-To-Earnings Ratio (28.5x) compared to the peer average (50.9x).

Price to Earnings Ratio vs Industry

How does ITC's PE Ratio compare vs other companies in the Asian Tobacco Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
ITC 28.5xIndustry Avg. 11.7xNo. of Companies5PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ITC is expensive based on its Price-To-Earnings Ratio (28.5x) compared to the Global Tobacco industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is ITC'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.

ITC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.5x
Fair PE Ratio43.7x

Price-To-Earnings vs Fair Ratio: ITC is good value based on its Price-To-Earnings Ratio (28.5x) compared to the estimated Fair Price-To-Earnings Ratio (43.7x).

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 ITC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹467.35
₹541.20
+15.8%
6.0%₹595.00₹420.00n/a35
Nov ’25₹490.30
₹539.22
+10.0%
6.3%₹595.00₹420.00n/a36
Oct ’25₹516.20
₹541.71
+4.9%
7.3%₹608.00₹400.00n/a35
Sep ’25₹501.90
₹538.83
+7.4%
6.8%₹585.00₹400.00n/a35
Aug ’25₹493.70
₹517.63
+4.8%
6.9%₹585.00₹400.00n/a35
Jul ’25₹429.05
₹496.53
+15.7%
6.7%₹585.00₹400.00n/a34
Jun ’25₹426.45
₹498.68
+16.9%
5.7%₹585.00₹435.00n/a34
May ’25₹435.65
₹501.42
+15.1%
6.2%₹585.00₹430.00n/a34
Apr ’25₹426.70
₹501.35
+17.5%
6.2%₹585.00₹430.00n/a35
Mar ’25₹409.50
₹502.47
+22.7%
6.0%₹585.00₹430.00n/a35
Feb ’25₹442.90
₹505.32
+14.1%
5.4%₹585.00₹460.00n/a35
Jan ’25₹468.05
₹511.32
+9.2%
5.7%₹585.00₹450.00n/a34
Dec ’24₹449.80
₹509.67
+13.3%
5.8%₹585.00₹450.00n/a34
Nov ’24₹428.10
₹509.67
+19.1%
5.8%₹585.00₹450.00₹490.3034
Oct ’24₹444.40
₹507.00
+14.1%
5.8%₹585.00₹450.00₹516.2033
Sep ’24₹441.05
₹504.46
+14.4%
6.1%₹585.00₹450.00₹501.9035
Aug ’24₹464.80
₹490.00
+5.4%
7.8%₹585.00₹400.00₹493.7034
Jul ’24₹451.60
₹469.43
+3.9%
5.2%₹530.00₹400.00₹429.0532
Jun ’24₹439.70
₹467.06
+6.2%
5.1%₹520.00₹400.00₹426.4531
May ’24₹425.55
₹434.75
+2.2%
5.0%₹475.00₹355.00₹435.6532
Apr ’24₹383.50
₹431.06
+12.4%
5.3%₹475.00₹355.00₹426.7032
Mar ’24₹378.70
₹421.22
+11.2%
8.4%₹475.00₹304.00₹409.5036
Feb ’24₹361.40
₹386.86
+7.0%
7.4%₹430.00₹304.00₹442.9035
Jan ’24₹331.55
₹386.18
+16.5%
7.1%₹424.00₹304.00₹468.0533
Dec ’23₹339.55
₹385.31
+13.5%
7.1%₹424.00₹304.00₹449.8032
Nov ’23₹349.50
₹384.35
+10.0%
7.0%₹424.00₹304.00₹428.1031

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

IFB Agro Industries

₹5.3b

Manufactures and bottling of alcoholic beverages and processed marine foods in India and internationally.

507438

₹566.75

7D

0.3%

1Y

22.8%

Gayatri Sugars

₹1.1b

Engages in the manufacture and sale of sugar and allied products in India.

532183

₹16.05

7D

-1.8%

1Y

-25.5%

Kaveri Seed

₹43.0b

Researches, develops, produces, processes, and markets hybrid seeds and vegetable crop seeds in India.

KSCL

₹835.95

7D

-9.6%

1Y

41.8%