Varun Beverages Limited (VBL.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

-37.5%

₹254.42

vs ₹407.35 price

Levered DCF

₹119.98

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

11.61

Safe zone

Rating

D+

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	54.55×	80.42×	78.52×	57.38×	55.35×	80.62×	41.99×	48.93×
P/B	8.46×	12.55×	23.27×	16.84×	9.43×	7.5×	5.93×	7.17×
P/S	7.64×	10.42×	10.06×	6.52×	4.36×	4.1×	2.77×	2.81×
EV / EBITDA	30.76×	42.54×	44.04×	30.86×	24.73×	23.97×	14.86×	15.47×
Gross margin	39.4%	55.5%	53.8%	52.5%	54.3%	57.1%	54.8%	56.0%
Operating margin	17.7%	44.0%	42.9%	41.5%	40.5%	40.4%	40.6%	41.5%
Net margin	14.0%	13.0%	12.8%	11.4%	7.9%	5.1%	6.6%	5.7%
Current ratio	1.94×	1.74×	1.02×	0.86×	0.84×	0.74×	0.75×	0.66×
Debt / equity	0.13×	0.17×	0.78×	0.76×	0.83×	0.92×	1.03×	1.38×
Interest coverage	22.6×	18.26×	24.3×	26.9×	17.24×	8.87×	8.93×	9.74×
Dividend yield	0.3%	0.2%	0.1%	0.2%	0.3%	0.3%	0.4%	0.3%
Payout ratio	16.7%	12.5%	11.1%	10.8%	15.6%	21.9%	16.7%	15.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	15.5%	15.6%	29.6%	29.3%	17.0%	9.3%	14.1%	14.7%
Return on invested capital	12.7%	33.4%	40.4%	43.5%	32.7%	35.4%	27.2%	28.6%
Return on assets	11.9%	11.2%	13.5%	12.9%	7.2%	3.9%	5.6%	4.9%
Free cash flow yield	0.4%	-0.2%	-0.5%	-0.0%	0.8%	1.7%	2.8%	1.0%
Earnings yield	1.8%	1.2%	1.3%	1.7%	1.8%	1.2%	2.4%	2.0%
Enterprise value	₹1.7T	₹2.1T	₹1.7T	₹896.6B	₹417B	₹295.8B	₹230.2B	₹170.5B
Net debt / EBITDA	0.09×	0.11×	1.37×	1.28×	1.92×	2.54×	2.12×	2.47×
Cash conversion cycle (days)	64	81	77	87	86	79	67	62