Adani Power Ltd
NSE:ADANIPOWER
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (18), the stock would be worth ₹135.08 (36% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 28.2 | ₹212.05 |
0%
|
| 3-Year Average | 18 | ₹135.08 |
-36%
|
| 5-Year Average | 16.9 | ₹127.05 |
-40%
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| Industry Average | 16.7 | ₹125.28 |
-41%
|
| Country Average | 23.3 | ₹174.77 |
-18%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
₹3T
|
/ |
Jan 2026
₹153.8B
|
= |
|
|
₹3T
|
/ |
Mar 2026
₹165.7B
|
= |
|
|
₹3T
|
/ |
Mar 2027
₹199.9B
|
= |
|
|
₹3T
|
/ |
Mar 2028
₹239.6B
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| IN |
|
Adani Power Ltd
NSE:ADANIPOWER
|
4.1T INR | 28.2 | 35.7 | |
| US |
|
Vistra Corp
NYSE:VST
|
55.6B USD | 34.7 | 73.9 | |
| SA |
|
ACWA Power Co
SAU:2082
|
184.5B SAR | 80.2 | 99.6 | |
| IN |
|
NTPC Ltd
NSE:NTPC
|
3.9T INR | 15.8 | 16.2 | |
| CN |
|
CGN Power Co Ltd
SZSE:003816
|
235.3B CNY | 22.3 | 24.1 | |
| CN |
|
China National Nuclear Power Co Ltd
SSE:601985
|
187B CNY | 20.2 | 21.7 | |
| TH |
G
|
Gulf Energy Development PCL
SET:GULF
|
836.6B THB | 53.3 | 39.1 | |
| DE |
|
Uniper SE
XETRA:UN0
|
17B EUR | 17.4 | 12.1 | |
| CN |
|
SDIC Power Holdings Co Ltd
SSE:600886
|
108.1B CNY | 12.9 | 16.5 | |
| US |
|
Talen Energy Corp
NASDAQ:TLN
|
16.6B USD | -786.3 | -76.8 | |
| CN |
|
Huaneng Power International Inc
SSE:600011
|
97.7B CNY | 11.9 | 8.4 |
Market Distribution
| Min | 0.4 |
| 30th Percentile | 15.7 |
| Median | 23.3 |
| 70th Percentile | 34.7 |
| Max | 48 145.1 |
Other Multiples
Adani Power Ltd
Glance View
Adani Power Ltd, a prominent player in the Indian energy sector, is an integral pillar of the Adani Group, a multinational conglomerate notable for its diverse industrial ventures. Established in 1996, the company was formed with a vision to address the burgeoning energy demands of a rapidly developing India. Adani Power has since transformed itself into the largest private thermal power producer in the country. Its core business revolves around generating electricity through thermal power plants, with an impressive portfolio of power stations strategically located across India. These facilities predominantly utilize coal as a fuel source, a choice driven by both economic feasibility and the energy policies prevailing within the region. This operational model is underpinned by long-term Power Purchase Agreements (PPAs) with state utilities, ensuring stable revenue streams despite the volatility that often characterizes the energy market. The company's financial success is further bolstered by an intricate logistical network, which encompasses coal procurement, transportation, and efficient power distribution. Adani Power meticulously sources coal from both domestic and international markets, leveraging economies of scale and strategic partnerships to optimize costs. In recent years, the company has taken strides towards sustainability and diversification, recognizing the global shift towards renewable energy platforms. While coal-based power remains its mainstay, Adani Power is gradually expanding its footprint in the renewable energy space, investing in solar power projects to align with national policies on green energy transitions. This strategic hybrid approach not only solidifies its presence across various sectors of the energy landscape but also fortifies its fiscal robustness, ensuring resilience against market fluctuations and regulatory shifts.