Aavas Financiers Limited (AAVAS.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+274.2%

₹4,174.97

vs ₹1,115.60 price

Levered DCF

₹7,900.05

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

0.67

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	13.03×	28.76×	22.87×	29.62×	56.97×	65.66×	37.33×	49.07×
P/B	1.69×	3.82×	2.97×	3.89×	7.21×	7.9×	4.43×	4.7×
P/S	3.18×	8.37×	6.68×	9.39×	18.22×	20.27×	12.07×	14.74×
EV / EBITDA	25.33×	39.36×	35.62×	38.61×	58.79×	67.48×	44.22×	45.33×
Gross margin	98.4%	32.0%	31.2%	36.6%	38.7%	34.4%	36.5%	38.1%
Operating margin	32.6%	19.9%	18.8%	23.0%	25.7%	23.9%	24.3%	24.3%
Net margin	24.4%	28.9%	29.2%	31.7%	32.0%	30.9%	32.3%	30.0%
Current ratio	0.56×	914.21×	0.01×	1,496.3×	2.36×	2.16×	2.71×	81.9×
Debt / equity	3.11×	3.18×	3.29×	3.02×	2.85×	2.66×	2.57×	1.99×
Interest coverage	0×	75.53×	57.93×	79.75×	89.26×	102.61×	75.11×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	13.0%	13.2%	13.0%	13.1%	12.7%	12.0%	11.9%	9.6%
Return on invested capital	3.3%	1.5%	1.5%	1.6%	2.1%	2.1%	2.1%	1.6%
Return on assets	3.1%	3.1%	3.0%	3.2%	3.2%	3.2%	3.3%	3.1%
Free cash flow yield	8.9%	3.4%	4.6%	3.8%	2.0%	1.5%	2.9%	-14.9%
Earnings yield	7.7%	3.5%	4.4%	3.4%	1.8%	1.5%	2.7%	2.0%
Enterprise value	₹223.8B	₹304.8B	₹236B	₹224.3B	₹282B	₹253.3B	₹143.3B	₹121.3B
Net debt / EBITDA	15.67×	17.87×	18.68×	16.71×	16.6×	16.93×	15.53×	13.06×
Cash conversion cycle (days)	-88	1	467	73	771	733	628	487