CARE Ratings Limited (CARERATING.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

-59.9%

₹656.55

vs ₹1,636.20 price

Levered DCF

₹664.17

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

18.31

Safe zone

Rating

B+

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	82.39×	24.4×	34.66×	22.82×	20.06×	13.53×	11.71×	21.33×
P/B	15.13×	4.17×	4.86×	2.84×	2.33×	2.06×	1.81×	5.33×
P/S	29.81×	8.36×	10.51×	6.83×	6.1×	5.06×	3.96×	9.19×
EV / EBITDA	69.76×	16.2×	21.82×	13.65×	14.02×	9.48×	8.59×	14.2×
Gross margin	50.7%	56.8%	44.8%	55.5%	54.6%	54.9%	60.6%	73.2%
Operating margin	39.4%	35.9%	31.3%	33.9%	29.4%	38.7%	31.3%	53.9%
Net margin	36.2%	34.1%	30.3%	29.9%	30.4%	37.4%	33.8%	43.1%
Current ratio	5.76×	7.08×	8.57×	10.41×	11.01×	10.32×	4.95×	5.71×
Debt / equity	0.03×	0.03×	0.03×	0.03×	0.01×	0.01×	0.02×	0×
Interest coverage	74.95×	68.49×	60.72×	94.48×	156.3×	149.92×	82.13×	0×
Dividend yield	0.4%	1.6%	1.9%	3.1%	2.5%	3.3%	10.7%	6.7%
Payout ratio	34.1%	40.0%	66.5%	71.5%	51.0%	44.4%	125.5%	142.1%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	18.4%	17.0%	14.0%	12.4%	11.6%	15.2%	15.4%	25.0%
Return on invested capital	13.9%	12.2%	9.5%	9.0%	8.3%	11.4%	10.9%	20.8%
Return on assets	15.5%	14.3%	11.9%	10.9%	10.3%	13.3%	13.3%	22.3%
Free cash flow yield	1.7%	3.2%	2.3%	3.7%	3.3%	6.7%	6.5%	2.8%
Earnings yield	1.2%	4.1%	2.9%	4.4%	5.0%	7.4%	8.5%	4.7%
Enterprise value	₹140B	₹33.4B	₹34.7B	₹18.7B	₹15B	₹12.1B	₹9.7B	₹29.1B
Net debt / EBITDA	-0.51×	-0.12×	-0.12×	-0.23×	-0.08×	-0.04×	0.04×	-0.1×
Cash conversion cycle (days)	5	3	9	-3	19	55	82	58