Reliance Power Ltd
NSE:RPOWER
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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 (19), the stock would be worth ₹42.04 (48% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 12.9 | ₹28.5 |
0%
|
| 3-Year Average | 19 | ₹42.04 |
+48%
|
| 5-Year Average | 13.2 | ₹29.24 |
+3%
|
| Industry Average | 16.7 | ₹36.84 |
+29%
|
| Country Average | 23.3 | ₹51.4 |
+80%
|
Forward EV/EBIT
Today’s price vs future ebit
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| IN |
|
Reliance Power Ltd
NSE:RPOWER
|
124.4B INR | 12.9 | 41.7 | |
| 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 |
|
Adani Power Ltd
NSE:ADANIPOWER
|
4.1T INR | 28.2 | 35.7 | |
| 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 |
Market Distribution
| Min | 0.4 |
| 30th Percentile | 15.7 |
| Median | 23.3 |
| 70th Percentile | 34.7 |
| Max | 48 145.1 |
Other Multiples
Reliance Power Ltd
Glance View
Reliance Power Ltd., a significant player in India's energy sector, operates as a beacon of modern energy solutions in a country with a rapidly growing demand for electricity. Founded by the Reliance Group of Companies under the visionary leadership of Anil Ambani, the company embarked on a journey to illuminate millions of homes and fuel industrial prowess through its vast network of power generation assets. With an eclectic mix of energy sources that include coal, gas, hydroelectric, solar, and wind, Reliance Power methodically crafts its growth story by effectively harnessing both conventional and renewable energy. Its business model rests upon large-scale power generation projects that are strategically located across India, ensuring a reliable supply of electricity to the country's overburdened grid. Revenue generation for Reliance Power involves a mixture of long-term power purchasing agreements and tariffs set by the government, a demonstration of its vital role in India's public service commitment. These agreements offer stability in cash flow and reduce market risks, allowing the company to focus on expanding its infrastructure and exploring newer, cleaner technologies. Despite the frequent challenges of regulatory changes, environmental concerns, and infrastructural demands, Reliance Power continues to navigate these complexities through strategic partnerships and investments, making its mark as a pivotal provider in India’s evolving energy landscape. Through this dual strategy of diversification and collaboration, Reliance Power manages to sustain its financial health while being committed to powering India's future.