RailTel Corporation of India Valuation

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

RAILTEL (₹364.8) is trading above our estimate of [[fair value]] (₹164.84)

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

Below Fair Value: RAILTEL (₹364.8) is trading above our estimate of fair value (₹164.84)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RAILTEL. This is calculated by dividing RAILTEL's market cap by their current earnings.
What is RAILTEL's PE Ratio?
PE Ratio	44.9x
Earnings	₹2.61b
Market Cap	₹117.08b

RAILTEL 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	4x
Enterprise Value/EBITDA	24.9x
PEG Ratio	2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RAILTEL 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	39.3x
HFCL HFCL	48.3x	n/a	₹182.2b
TATACOMM Tata Communications	53.5x	39.2%	₹495.4b
INDUSTOWER Indus Towers	11.5x	1.5%	₹870.8b
SARTELE SAR Televenture	44.1x	n/a	₹12.2b
RAILTEL RailTel Corporation of India	44.9x	21.9%	₹117.1b

Price-To-Earnings vs Peers: RAILTEL is expensive based on its Price-To-Earnings Ratio (44.9x) compared to the peer average (39.3x).

Price to Earnings Ratio vs Industry

How does RAILTEL's PE Ratio compare vs other companies in the Asian Telecom Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: RAILTEL is expensive based on its Price-To-Earnings Ratio (44.9x) compared to the Asian Telecom industry average (15x).

Price to Earnings Ratio vs Fair Ratio

What is RAILTEL'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.

RAILTEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	44.9x
Fair PE Ratio	38.5x

Price-To-Earnings vs Fair Ratio: RAILTEL is expensive based on its Price-To-Earnings Ratio (44.9x) compared to the estimated Fair Price-To-Earnings Ratio (38.5x).

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 RAILTEL forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	₹364.80	₹340.50 -6.7%	23.6%	₹421.00	₹260.00	n/a	2
Nov ’25	₹421.55	₹277.50 -34.2%	13.5%	₹315.00	₹240.00	n/a	2
Oct ’25	₹454.00	₹277.50 -38.9%	13.5%	₹315.00	₹240.00	n/a	2
Sep ’25	₹490.80	₹277.50 -43.5%	13.5%	₹315.00	₹240.00	n/a	2
Aug ’25	₹496.40	₹236.50 -52.4%	1.5%	₹240.00	₹233.00	n/a	2
Jul ’25	₹472.15	₹236.50 -49.9%	1.5%	₹240.00	₹233.00	n/a	2
Jun ’25	₹413.95	₹236.50 -42.9%	1.5%	₹240.00	₹233.00	n/a	2
May ’25	₹399.60	₹203.00 -49.2%	23.2%	₹250.00	₹156.00	n/a	2
Apr ’25	₹389.00	₹203.00 -47.8%	23.2%	₹250.00	₹156.00	n/a	2
Mar ’25	₹446.55	₹203.00 -54.5%	23.2%	₹250.00	₹156.00	n/a	2
Feb ’25	₹419.95	₹203.00 -51.7%	23.2%	₹250.00	₹156.00	n/a	2
Dec ’24	₹282.00	₹148.00 -47.5%	5.4%	₹156.00	₹140.00	n/a	2
Nov ’24	₹221.30	₹148.00 -33.1%	5.4%	₹156.00	₹140.00	₹421.55	2
Oct ’24	₹223.90	₹142.50 -36.4%	1.8%	₹145.00	₹140.00	₹454.00	2
Sep ’24	₹241.80	₹142.50 -41.1%	1.8%	₹145.00	₹140.00	₹490.80	2
Aug ’24	₹176.85	₹142.50 -19.4%	1.8%	₹145.00	₹140.00	₹496.40	2
Mar ’24	₹109.40	₹127.50 +16.5%	13.7%	₹145.00	₹110.00	₹446.55	2
Feb ’24	₹115.10	₹135.00 +17.3%	18.5%	₹160.00	₹110.00	₹419.95	2
Jan ’24	₹126.75	₹130.00 +2.6%	16.6%	₹160.00	₹110.00	₹353.05	3
Dec ’23	₹138.25	₹130.00 -6.0%	16.6%	₹160.00	₹110.00	₹282.00	3
Nov ’23	₹114.65	₹116.67 +1.8%	4.0%	₹120.00	₹110.00	₹221.30	3

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