Rainbow Children's Medicare

NSEI:RAINBOW Stock Report

Mkt Cap: ₹80.7b

We’ve recently updated our valuation analysis.

Rainbow Children's Medicare Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RAINBOW 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/Revenue8.3x
Enterprise Value/EBITDA28.1x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RAINBOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average37.6x
ASTERDM Aster DM Healthcare
23.6x27.0%₹115.4b
543308 Krishna Institute of Medical Sciences
35.8x13.1%₹117.9b
MEDANTA Global Health
56.8xn/a₹121.2b
NH Narayana Hrudayalaya
34.3x9.9%₹153.0b
RAINBOW Rainbow Children's Medicare
51.7x22.6%₹80.7b

Price-To-Earnings vs Peers: RAINBOW is expensive based on its Price-To-Earnings Ratio (51.7x) compared to the peer average (37.6x).


Price to Earnings Ratio vs Industry

How does RAINBOW's PE Ratio compare vs other companies in the IN Healthcare Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.7%
n/an/an/a

Price-To-Earnings vs Industry: RAINBOW is expensive based on its Price-To-Earnings Ratio (51.7x) compared to the Indian Healthcare industry average (35.8x)


Price to Earnings Ratio vs Fair Ratio

What is RAINBOW'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.

RAINBOW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio51.7x
Fair PE Ratio44.3x

Price-To-Earnings vs Fair Ratio: RAINBOW is expensive based on its Price-To-Earnings Ratio (51.7x) compared to the estimated Fair Price-To-Earnings Ratio (44.3x).


Share Price vs Fair Value

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

Below Fair Value: RAINBOW (₹795.2) is trading above our estimate of fair value (₹310.04)

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


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 RAINBOW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹795.20
₹875.00
+10.0%
2.9%₹900.00₹850.00n/a2
Nov ’23₹706.30
₹731.00
+3.5%
4.0%₹760.00₹702.00n/a2
Oct ’23₹630.85
₹651.00
+3.2%
7.8%₹702.00₹600.00n/a2
Sep ’23₹634.25
₹651.00
+2.6%
7.8%₹702.00₹600.00n/a2

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


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