Reliance Power Ltd
NSE:RPOWER

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Reliance Power Ltd
NSE:RPOWER
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Price: 28.5 INR -5.28% Market Closed
Market Cap: ₹117.9B

EV/EBIT

12.9
Current
32%
Cheaper
vs 3-y average of 19

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.

EV/EBIT
12.9
=
Enterprise Value
₹186.4B
/
EBIT
₹15.4B

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.

EV/EBIT
12.9
=
Enterprise Value
₹186.4B
/
EBIT
₹15.4B

Valuation Scenarios

Reliance Power Ltd is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (19), the stock would be worth ₹42.04 (48% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+80%
Average Upside
40%
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

Not enough data available to calculate forward EV/EBIT

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
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
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
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
IN
Reliance Power Ltd
NSE:RPOWER
Average EV/EBIT: 29.8
12.9
N/A N/A
US
Vistra Corp
NYSE:VST
34.7
42%
0.8
SA
ACWA Power Co
SAU:2082
80.2
43%
1.9
IN
Adani Power Ltd
NSE:ADANIPOWER
28.2
12%
2.4
IN
NTPC Ltd
NSE:NTPC
15.8
8%
2
CN
CGN Power Co Ltd
SZSE:003816
22.3
16%
1.4
CN
China National Nuclear Power Co Ltd
SSE:601985
20.2
7%
2.9
TH
G
Gulf Energy Development PCL
SET:GULF
53.3
11%
4.8
DE
Uniper SE
XETRA:UN0
17.4
3%
5.8
CN
SDIC Power Holdings Co Ltd
SSE:600886
12.9
1%
12.9
US
Talen Energy Corp
NASDAQ:TLN
Negative Multiple: -786.3 N/A N/A

Market Distribution

Lower than 79% of companies in India
Percentile
21st
Based on 2 572 companies
21st percentile
12.9
Low
0.4 — 15.7
Typical Range
15.7 — 34.7
High
34.7 —
Distribution Statistics
India
Min 0.4
30th Percentile 15.7
Median 23.3
70th Percentile 34.7
Max 48 145.1

Reliance Power Ltd
Glance View

Market Cap
117.9B INR
Industry
Utilities

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.

RPOWER Intrinsic Value
28.4 INR
Fairly Valued
Intrinsic Value
Price ₹28.5
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