ITC Limited (ITC.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

+274.7%

₹1,006.88

vs ₹268.75 price

Levered DCF

₹761.94

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

—

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	17.66×	14.64×	24.53×	23.35×	19.11×	19.28×	13×	27.24×
P/B	5.04×	7.26×	6.74×	6.48×	4.67×	4.2×	3.05×	5.8×
P/S	4.67×	6.75×	7.39×	6.32×	4.8×	5.15×	4.03×	7.1×
EV / EBITDA	12.31×	19.44×	19.68×	17.45×	14.14×	14.87×	10.28×	18.52×
Gross margin	58.4%	56.7%	59.3%	57.9%	55.4%	58.0%	63.5%	62.6%
Operating margin	32.7%	46.1%	48.4%	47.3%	44.9%	45.7%	51.9%	50.9%
Net margin	26.5%	46.1%	30.1%	27.1%	25.1%	26.7%	31.0%	26.0%
Current ratio	3.04×	3.06×	3×	2.89×	2.81×	3.27×	4.13×	3.17×
Debt / equity	0.03×	0×	0×	0×	0×	0×	0×	0×
Interest coverage	300.66×	770.37×	840.55×	431.78×	453.65×	388.64×	315.13×	344.9×
Dividend yield	5.0%	3.5%	4.0%	3.4%	4.7%	7.4%	4.4%	2.3%
Payout ratio	88.3%	51.2%	97.3%	80.3%	90.5%	143.4%	56.9%	61.4%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	28.5%	49.6%	27.5%	27.8%	24.4%	21.8%	23.4%	21.3%
Return on invested capital	24.2%	35.0%	32.1%	34.9%	31.2%	26.6%	29.4%	26.7%
Return on assets	22.1%	39.4%	22.3%	22.3%	19.7%	17.8%	19.8%	17.5%
Free cash flow yield	4.5%	3.0%	2.7%	3.6%	4.7%	4.2%	6.2%	2.7%
Earnings yield	5.7%	6.8%	4.1%	4.3%	5.2%	5.2%	7.7%	3.7%
Enterprise value	₹3.7T	₹5.1T	₹5T	₹4.5T	₹2.9T	₹2.5T	₹2T	₹3.4T
Net debt / EBITDA	0.06×	-0.01×	-0.01×	-0.01×	-0×	-0×	-0.02×	-0.02×
Cash conversion cycle (days)	174	153	154	111	111	134	134	127