Reliance Communications Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate RCOM's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RCOM's fair value for valuation analysis.

Key Valuation Metric

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

Key metric: As RCOM is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RCOM. This is calculated by dividing RCOM's market cap by their current revenue.
What is RCOM's PS Ratio?
PS Ratio	1.4x
Sales	₹3.71b
Market Cap	₹5.12b

RCOM 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	127.4x
Enterprise Value/EBITDA	2626.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does RCOM's PS Ratio compare to its peers?

The above table shows the PS ratio for RCOM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	4.6x
IDEA Vodafone Idea	1.2x	11.3%	₹494.9b
BHARTIHEXA Bharti Hexacom	9.1x	13.5%	₹698.0b
KDL Kore Digital	4.5x	n/a	₹8.1b
500108 Mahanagar Telephone Nigam	3.5x	n/a	₹27.7b
RCOM Reliance Communications	1.4x	n/a	₹5.1b

Price-To-Sales vs Peers: RCOM is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (4.6x).

Price to Sales Ratio vs Industry

How does RCOM's PS Ratio compare vs other companies in the Asian Wireless Telecom Industry?

3 Companies	Price / Sales	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: RCOM is expensive based on its Price-To-Sales Ratio (1.4x) compared to the Asian Wireless Telecom industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is RCOM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RCOM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate RCOM's Price-To-Sales 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.