Vedanta Limited (VEDL.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

-21.8%

₹192.56

vs ₹246.10 price

Levered DCF

₹659.85

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.18

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	14.69×	11.74×	25.22×	9.63×	7.95×	7.3×	-3.59×	9.95×
P/B	6.26×	4.3×	3.5×	2.6×	2.3×	1.37×	0.44×	1.13×
P/S	3.26×	1.17×	0.76×	0.7×	1.14×	0.98×	0.29×	0.77×
EV / EBITDA	11.6×	5.83×	4.97×	4.61×	4.33×	4.93×	3.58×	5.35×
Gross margin	48.8%	49.7%	49.4%	45.9%	54.6%	54.1%	50.0%	48.8%
Operating margin	23.5%	47.1%	46.4%	43.5%	52.4%	50.7%	46.7%	45.3%
Net margin	22.2%	9.9%	3.0%	7.2%	14.3%	13.3%	-7.9%	7.7%
Current ratio	0.77×	0.7×	0.66×	0.7×	1.04×	0.95×	0.91×	0.78×
Debt / equity	0.81×	1.82×	2.37×	1.69×	0.82×	0.92×	1.07×	1.06×
Interest coverage	6.54×	7.36×	7.24×	10.52×	14.4×	8.66×	8.08×	7.42×
Dividend yield	5.2%	9.5%	17.3%	29.2%	11.1%	4.1%	6.0%	11.5%
Payout ratio	76.4%	111.9%	438.1%	283.3%	88.7%	30.3%	-21.7%	114.3%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	42.6%	36.4%	13.8%	26.8%	28.8%	18.6%	-12.2%	11.3%
Return on invested capital	6.3%	35.9%	18.3%	34.6%	33.1%	26.4%	15.9%	17.9%
Return on assets	7.5%	7.4%	2.2%	5.4%	9.5%	6.2%	-3.6%	3.5%
Free cash flow yield	6.1%	12.7%	17.6%	18.8%	16.2%	20.1%	47.9%	21.1%
Earnings yield	6.8%	8.4%	3.9%	10.3%	12.5%	13.6%	-27.8%	10.1%
Enterprise value	₹2.9T	₹2.5T	₹1.8T	₹1.6T	₹2T	₹1.4T	₹775B	₹1.3T
Net debt / EBITDA	1.28×	1.67×	1.96×	1.7×	0.99×	1.88×	2.47×	2.44×
Cash conversion cycle (days)	-11	-34	-14	-6	-7	-3	-30	0