Hindustan Unilever Limited (HINDUNILVR.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

+2.3%

₹1,989.21

vs ₹1,945.30 price

Levered DCF

₹1,826.11

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

9.54

Safe zone

Rating

A-

Overall 4 / 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	32.11×	49.29×	52.26×	59.45×	54.21×	71.45×	73.74×	60.42×
P/B	9.91×	10.62×	10.49×	11.96×	9.81×	11.98×	60.47×	46.5×
P/S	7.49×	8.35×	8.7×	9.96×	9.2×	12.18×	12.56×	9.35×
EV / EBITDA	30.93×	32.72×	35.25×	41.32×	36.87×	48.46×	48.27×	39.82×
Gross margin	43.9%	43.6%	43.9%	39.9%	42.7%	44.1%	45.4%	44.7%
Operating margin	21.3%	21.5%	21.9%	21.6%	22.6%	22.6%	22.3%	21.1%
Net margin	23.3%	16.9%	16.6%	16.8%	17.0%	17.0%	17.0%	15.5%
Current ratio	1.22×	1.33×	1.66×	1.41×	1.38×	1.28×	1.32×	1.37×
Debt / equity	0.03×	0.03×	0.03×	0.02×	0.02×	0.02×	0.1×	0.01×
Interest coverage	33.47×	103.95×	122.86×	148.25×	144.1×	120.58×	106.43×	2,067.75×
Dividend yield	2.1%	2.4%	1.8%	1.4%	1.6%	1.5%	1.3%	1.2%
Payout ratio	67.3%	117.1%	91.6%	83.7%	84.8%	110.2%	92.7%	75.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	30.9%	21.6%	20.1%	20.1%	18.1%	16.8%	82.0%	77.0%
Return on invested capital	16.4%	15.7%	15.1%	16.1%	14.9%	13.8%	67.3%	58.1%
Return on assets	18.9%	13.3%	13.1%	13.8%	12.6%	11.6%	33.5%	32.5%
Free cash flow yield	2.1%	2.0%	2.6%	1.5%	1.6%	0.9%	1.4%	1.4%
Earnings yield	3.1%	2.0%	1.9%	1.7%	1.8%	1.4%	1.4%	1.7%
Enterprise value	₹4.8T	₹5.2T	₹5.4T	₹6T	₹4.8T	₹5.7T	₹5T	₹3.7T
Net debt / EBITDA	-0.11×	-0.28×	0.04×	0.03×	-0.03×	-0.09×	-0.23×	-0.06×
Cash conversion cycle (days)	-65	-46	-49	-32	-42	-57	-70	-61