NTPC Limited

NSEI:NTPC Stock Report

Market Cap: ₹3.6t

NTPC Valuation

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

Below Fair Value: NTPC (₹356.15) is trading above our estimate of fair value (₹184.08)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for NTPC. This is calculated by dividing NTPC's market cap by their current earnings.
What is NTPC's PE Ratio?
PE Ratio15.6x
Earnings₹220.73b
Market Cap₹3.56t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NTPC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.3x
ADANIPOWER Adani Power
15.6xn/a₹2.0t
533148 JSW Energy
62.3x24.1%₹1.2t
513683 NLC India
19.1x17.9%₹328.6b
RPOWER Reliance Power
12.4xn/a₹143.6b
NTPC NTPC
15.6x3.5%₹3.6t

Price-To-Earnings vs Peers: NTPC is good value based on its Price-To-Earnings Ratio (15.6x) compared to the peer average (27.3x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
533122 RattanIndia Power
0.7xn/aUS$825.50m
GVKPIL GVK Power & Infrastructure
1.5xn/aUS$97.44m
No more companies available in this PE range
NTPC 15.6xIndustry Avg. 27.0xNo. of Companies3PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NTPC is good value based on its Price-To-Earnings Ratio (15.6x) compared to the Indian Renewable Energy industry average (27x).

Price to Earnings Ratio vs Fair Ratio

What is NTPC'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.

NTPC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.6x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: NTPC is good value based on its Price-To-Earnings Ratio (15.6x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).

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 NTPC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹356.15
₹446.20
+25.3%
12.7%₹500.00₹280.00n/a25
Nov ’25₹411.35
₹445.21
+8.2%
12.9%₹500.00₹280.00n/a24
Oct ’25₹440.10
₹428.36
-2.7%
14.4%₹500.00₹271.00n/a25
Sep ’25₹416.20
₹427.96
+2.8%
14.9%₹523.00₹271.00n/a25
Aug ’25₹423.45
₹425.62
+0.5%
15.6%₹523.00₹271.00n/a26
Jul ’25₹369.75
₹407.80
+10.3%
15.6%₹523.00₹258.00n/a25
Jun ’25₹359.00
₹406.44
+13.2%
15.9%₹523.00₹258.00n/a25
May ’25₹363.20
₹371.52
+2.3%
13.8%₹523.00₹258.00n/a23
Apr ’25₹342.35
₹363.33
+6.1%
16.3%₹523.00₹215.00n/a24
Mar ’25₹343.50
₹361.42
+5.2%
16.0%₹523.00₹215.00n/a24
Feb ’25₹322.00
₹337.26
+4.7%
14.5%₹415.00₹215.00n/a23
Jan ’25₹309.75
₹283.91
-8.3%
13.4%₹380.00₹198.00n/a23
Dec ’24₹268.95
₹272.95
+1.5%
9.8%₹306.00₹198.00n/a21
Nov ’24₹232.60
₹265.82
+14.3%
10.2%₹300.00₹198.00₹411.3522
Oct ’24₹245.55
₹250.59
+2.1%
12.0%₹300.00₹177.00₹440.1022
Sep ’24₹230.70
₹238.09
+3.2%
11.8%₹275.00₹177.00₹416.2023
Aug ’24₹225.15
₹231.04
+2.6%
11.5%₹272.00₹177.00₹423.4523
Jul ’24₹189.15
₹204.91
+8.3%
6.2%₹233.00₹174.00₹369.7522
Jun ’24₹174.40
₹204.45
+17.2%
6.3%₹233.00₹174.00₹359.0022
May ’24₹172.00
₹201.41
+17.1%
5.4%₹223.00₹176.00₹363.2022
Apr ’24₹175.10
₹201.33
+15.0%
4.4%₹223.00₹180.00₹342.3521
Mar ’24₹172.25
₹201.41
+16.9%
5.0%₹223.00₹180.00₹343.5022
Feb ’24₹170.00
₹201.41
+18.5%
5.0%₹223.00₹180.00₹322.0022
Jan ’24₹166.45
₹196.90
+18.3%
5.5%₹220.00₹175.00₹309.7520
Dec ’23₹172.20
₹195.40
+13.5%
5.7%₹220.00₹175.00₹268.9520
Nov ’23₹181.80
₹194.80
+7.2%
5.8%₹220.00₹175.00₹232.6020

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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