NTPC Limited (NTPC.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

+73.7%

₹552.42

vs ₹318.10 price

Levered DCF

₹172.59

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.1

Distress zone

Rating

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	13.28×	14.58×	15.95×	10.04×	7.85×	7.17×	7.18×	10.58×
P/B	1.77×	1.85×	2.07×	1.15×	0.97×	0.83×	0.7×	1.21×
P/S	1.92×	1.81×	1.86×	0.96×	0.99×	0.94×	0.76×	1.33×
EV / EBITDA	10.28×	10.71×	11.24×	7.98×	8.48×	9.12×	8.64×	10.97×
Gross margin	33.4%	43.1%	41.7%	39.8%	43.2%	45.2%	43.0%	40.5%
Operating margin	19.0%	39.4%	38.0%	36.0%	38.3%	39.7%	37.5%	34.6%
Net margin	15.8%	12.4%	11.7%	9.6%	12.6%	13.1%	10.6%	12.6%
Current ratio	0.82×	0.92×	0.85×	0.81×	0.76×	0.8×	0.88×	0.76×
Debt / equity	1.33×	1.36×	1.48×	1.52×	1.56×	1.67×	1.69×	1.47×
Interest coverage	2.58×	5.99×	5.68×	5.99×	5.46×	4.6×	5.32×	6.24×
Dividend yield	2.4%	2.4%	2.2%	4.3%	5.4%	5.5%	4.5%	3.7%
Payout ratio	29.7%	35.0%	35.6%	42.9%	42.6%	39.5%	32.5%	38.9%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	14.5%	12.7%	13.0%	11.5%	12.3%	11.6%	9.8%	11.5%
Return on invested capital	7.1%	11.7%	12.0%	11.5%	10.6%	10.7%	6.8%	12.2%
Return on assets	5.3%	4.5%	4.3%	3.8%	4.0%	3.7%	3.1%	4.0%
Free cash flow yield	-2.7%	2.7%	3.0%	9.0%	13.2%	8.7%	7.6%	-2.6%
Earnings yield	8.2%	6.9%	6.3%	10.0%	12.7%	14.0%	13.9%	9.5%
Enterprise value	₹6.2T	₹5.9T	₹5.7T	₹3.9T	₹3.4T	₹3.1T	₹2.8T	₹3T
Net debt / EBITDA	4.34×	4.51×	4.67×	4.52×	5.22×	6.08×	6.1×	6×
Cash conversion cycle (days)	95	94	124	98	97	124	133	74