GTL Valuation

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

GTL (₹11.79) is trading below our estimate of [[fair value]] (₹890.05)

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: GTL (₹11.79) is trading below our estimate of fair value (₹890.05)

Significantly Below Fair Value: GTL is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GTL. This is calculated by dividing GTL's market cap by their current earnings.
What is GTL's PE Ratio?
PE Ratio	1.1x
Earnings	₹1.62b
Market Cap	₹1.90b

GTL 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/Revenue	24.1x
Enterprise Value/EBITDA	55.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	27.5x
SATECH S A Tech Software India	38.7x	n/a	₹1.9b
DELAPLEX Delaplex	16.3x	n/a	₹1.9b
GSS GSS Infotech	22.7x	n/a	₹1.6b
FIDEL Fidel Softech	32x	n/a	₹2.4b
GTL GTL	1.1x	n/a	₹1.9b

Price-To-Earnings vs Peers: GTL is good value based on its Price-To-Earnings Ratio (1.1x) compared to the peer average (27.5x).

Price to Earnings Ratio vs Industry

How does GTL's PE Ratio compare vs other companies in the IN IT Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	34.3x	11.1%
GTL GTL	1.1x	n/a	US$22.47m
517429 Athena Global Technologies	0.6x	n/a	US$15.83m
509040 Netlink Solutions (India)	3.2x	n/a	US$5.54m

4 Companies		Estimated Growth	Market Cap
Industry Avg.	34.3x	11.1%
GTL GTL	1.1x	n/a	US$22.47m

No more companies

Price-To-Earnings vs Industry: GTL is good value based on its Price-To-Earnings Ratio (1.1x) compared to the Indian IT industry average (34.3x).

Price to Earnings Ratio vs Fair Ratio

What is GTL'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.

GTL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	1.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GTL's Price-To-Earnings Fair Ratio for valuation analysis.

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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