Muthoot Finance Ltd
NSE:MUTHOOTFIN
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EV/FCFF
Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.
Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.
Valuation Scenarios
If EV/FCFF returns to its Industry Average (36.6), the stock would be worth ₹-16 731.15 (589% downside from current price).
| Scenario | EV/FCFF Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | -7.5 | ₹3 424.2 |
0%
|
| Industry Average | 36.6 | ₹-16 731.15 |
-589%
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| Country Average | 35.9 | ₹-16 393.62 |
-579%
|
Forward EV/FCFF
Today’s price vs future free cash flow to firm
Peer Comparison
| Market Cap | EV/FCFF | P/E | ||||
|---|---|---|---|---|---|---|
| IN |
|
Muthoot Finance Ltd
NSE:MUTHOOTFIN
|
1.4T INR | -7.5 | 15.7 | |
| US |
|
American Express Co
NYSE:AXP
|
220.3B USD | 26.8 | 19.7 | |
| US |
|
Capital One Financial Corp
NYSE:COF
|
117.8B USD | 0 | 40.9 | |
| IN |
|
Bajaj Finance Ltd
NSE:BAJFINANCE
|
5.8T INR | -13.6 | 32.1 | |
| US |
|
Discover Financial Services
NYSE:DFS
|
50.3B USD | 0 | 9.1 | |
| US |
|
Synchrony Financial
NYSE:SYF
|
25.7B USD | 0 | 7.3 | |
| IN |
|
Shriram Finance Ltd
NSE:SHRIRAMFIN
|
2.2T INR | -34.5 | 22.2 | |
| US |
|
SoFi Technologies Inc
NASDAQ:SOFI
|
20.5B USD | 0 | 43.9 | |
| KZ |
K
|
Kaspi.kz AO
NASDAQ:KSPI
|
16.3B USD | 0 | 0 | |
| IN |
|
Tata Capital Ltd
NSE:TATACAP
|
1.3T INR | -15.4 | 31.7 | |
| IN |
|
Cholamandalam Investment and Finance Company Ltd
NSE:CHOLAFIN
|
1.3T INR | -12 | 26.9 |
Market Distribution
| Min | 0.1 |
| 30th Percentile | 20.7 |
| Median | 35.9 |
| 70th Percentile | 64.8 |
| Max | 50 585.9 |
Other Multiples
Muthoot Finance Ltd
Glance View
Muthoot Finance Ltd. is a prominent player in India's financial sector, operating as the largest gold financing company in the country. The firm traces its origins back to 1939, rooted in the southern state of Kerala, known for its entrepreneurial zeal and cultural richness. Beginning as a small trading business by M. George Muthoot, it gradually metamorphosed into a financial powerhouse. At the heart of Muthoot Finance's business is the age-old practice of utilizing gold loans as a financial lifeline. In a nation where gold is both a symbol of wealth and an economic fallback, Muthoot provides a simple yet powerful service: advancing loans against the family’s gold ornaments. This has turned into a reliable financial instrument for millions who require immediate capital to meet their personal or business needs. The company operates through an extensive network of branches across the Indian subcontinent, making finance easily accessible to its widespread clientele. Its business model capitalizes on a low-risk avenue where the pledged gold acts as an effective collateral, significantly reducing the risk of default. Muthoot Finance earns its revenue through the interest levied on these loans. These interest rates are calculated based on the duration and value of the gold pledged. Moreover, due to the emotional and financial significance of gold, the default rates are low, ensuring the stability of cash flow and profits. This gold loan business forms the crux of Muthoot Finance's success, providing pivotal liquidity to India’s largely underbanked population while bolstering the company’s place in the financial realm.
