CEAT Limited (CEATLTD.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

-80.1%

₹666.45

vs ₹3,341.20 price

Levered DCF

₹2,654.90

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.94

Grey 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	18.77×	24.62×	16.7×	31.52×	52.96×	14.57×	13.87×	18.28×
P/B	2.6×	2.66×	2.65×	1.71×	1.15×	1.9×	1.1×	1.67×
P/S	0.84×	0.88×	0.9×	0.52×	0.4×	0.83×	0.47×	0.66×
EV / EBITDA	8.04×	9.3×	7.54×	8.32×	8.29×	7.86×	7.18×	9.28×
Gross margin	28.1%	36.9%	41.1%	33.9%	34.7%	43.0%	41.2%	39.2%
Operating margin	8.6%	27.1%	30.8%	24.4%	24.4%	30.6%	29.2%	27.8%
Net margin	4.5%	3.6%	5.4%	1.6%	0.8%	5.7%	3.4%	3.6%
Current ratio	0.67×	0.66×	0.63×	0.64×	0.72×	0.74×	0.79×	0.94×
Debt / equity	0.65×	0.49×	0.44×	0.67×	0.68×	0.46×	0.7×	0.54×
Interest coverage	3.76×	13.51×	14.27×	11.4×	13.24×	13.48×	12.87×	21.96×
Dividend yield	0.9%	1.0%	0.5%	0.2%	2.0%	0.0%	3.6%	1.0%
Payout ratio	17.4%	25.7%	7.6%	6.8%	104.8%	0.1%	49.3%	17.6%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	13.8%	10.8%	15.9%	5.4%	2.2%	13.0%	8.0%	9.1%
Return on invested capital	10.6%	36.8%	42.7%	32.1%	28.7%	39.9%	27.8%	28.6%
Return on assets	5.0%	4.2%	6.4%	1.9%	0.8%	5.3%	3.1%	3.9%
Free cash flow yield	2.7%	1.3%	7.9%	5.6%	-9.0%	11.4%	-5.1%	-12.0%
Earnings yield	5.3%	4.1%	6.0%	3.2%	1.9%	6.9%	7.2%	5.5%
Enterprise value	₹163.3B	₹137.2B	₹124.7B	₹81B	₹59.8B	₹77.9B	₹52.2B	₹60.4B
Net debt / EBITDA	1.59×	1.42×	1.05×	2.29×	3.06×	1.51×	2.76×	2.2×
Cash conversion cycle (days)	-11	-12	-19	-8	9	17	40	61