We’ve recently updated our valuation analysis.

NHPC Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 NHPC?

Other financial metrics that can be useful for relative valuation.

NHPC 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/Revenue7.1x
Enterprise Value/EBITDA12.9x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NHPC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.9x
JPPOWER Jaiprakash Power Ventures
11.3xn/a₹47.3b
534618 Waaree Renewable Technologies
41.2xn/a₹10.2b
533148 JSW Energy
17.9x6.3%₹370.8b
GREENPOWER Orient Green Power
29.1xn/a₹7.1b
NHPC NHPC
10.9x12.6%₹419.4b

Price-To-Earnings vs Peers: NHPC is good value based on its Price-To-Earnings Ratio (10.9x) compared to the peer average (24.9x).


Price to Earnings Ratio vs Industry

How does NHPC's PE Ratio compare vs other companies in the Asian Renewable Energy Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a25.4%
n/an/an/a

Price-To-Earnings vs Industry: NHPC is good value based on its Price-To-Earnings Ratio (10.9x) compared to the Asian Renewable Energy industry average (14.1x)


Price to Earnings Ratio vs Fair Ratio

What is NHPC'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.

NHPC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.9x
Fair PE Ratio14.5x

Price-To-Earnings vs Fair Ratio: NHPC is good value based on its Price-To-Earnings Ratio (10.9x) compared to the estimated Fair Price-To-Earnings Ratio (14.5x).


Share Price vs Fair Value

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

Below Fair Value: NHPC (₹41.75) is trading below our estimate of fair value (₹114.98)

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


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 NHPC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹41.75
₹49.42
+18.4%
8.0%₹57.00₹45.00n/a6
Jan ’24₹39.75
₹48.92
+23.1%
6.3%₹54.00₹45.00n/a6
Dec ’23₹42.05
₹47.75
+13.6%
10.5%₹54.00₹38.00n/a6
Nov ’23₹42.90
₹42.55
-0.8%
13.6%₹54.00₹38.00n/a6
Oct ’23₹35.70
₹40.98
+14.8%
14.4%₹51.00₹32.90n/a6
Sep ’23₹37.50
₹38.98
+3.9%
10.8%₹46.00₹32.90n/a5
Aug ’23₹34.70
₹38.58
+11.2%
11.4%₹46.00₹32.90n/a5
Jul ’23₹30.85
₹38.58
+25.1%
11.4%₹46.00₹32.90n/a5
Jun ’23₹34.10
₹37.98
+11.4%
11.5%₹46.00₹32.90n/a5
May ’23₹33.20
₹37.18
+12.0%
11.9%₹45.00₹32.90n/a5
Apr ’23₹27.85
₹36.38
+30.6%
12.5%₹45.00₹32.90n/a5
Mar ’23₹27.40
₹34.98
+27.7%
14.9%₹45.00₹28.00n/a6
Feb ’23₹29.90
₹34.37
+14.9%
16.1%₹45.00₹28.00₹42.406
Jan ’23₹30.95
₹33.95
+9.7%
17.0%₹45.00₹28.00₹39.756
Dec ’22₹31.55
₹33.95
+7.6%
17.0%₹45.00₹28.00₹42.056
Nov ’22₹31.95
₹31.34
-1.9%
8.6%₹35.00₹28.00₹42.905
Oct ’22₹29.10
₹31.34
+7.7%
8.6%₹35.00₹28.00₹35.705
Sep ’22₹27.20
₹30.68
+12.8%
8.5%₹35.00₹28.00₹37.504
Aug ’22₹26.25
₹30.68
+16.9%
8.5%₹35.00₹28.00₹34.704
Jul ’22₹26.25
₹29.74
+13.3%
10.1%₹35.00₹26.00₹30.855
Jun ’22₹25.75
₹28.66
+11.3%
9.7%₹34.00₹26.00₹34.105
May ’22₹24.25
₹28.66
+18.2%
9.7%₹34.00₹26.00₹33.205
Apr ’22₹24.65
₹28.66
+16.3%
9.7%₹34.00₹26.00₹27.855
Mar ’22₹24.50
₹28.66
+17.0%
9.7%₹34.00₹26.00₹27.405
Feb ’22₹23.70
₹27.48
+15.9%
14.1%₹34.00₹22.00₹29.905

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


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