Reliance Power Ltd
NSE:RPOWER

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Reliance Power Ltd
NSE:RPOWER
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Price: 28.61 INR -1.31% Market Closed
Market Cap: ₹118.3B

EV/FCFF

10.4
Current
56%
More Expensive
vs 3-y average of 6.7

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.

EV/FCFF
10.4
=
Enterprise Value
₹186.4B
/
Free Cash Flow to Firm
₹19.2B

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.

EV/FCFF
10.4
=
Enterprise Value
₹186.4B
/
Free Cash Flow to Firm
₹19.2B

Valuation Scenarios

Reliance Power Ltd is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (6.7), the stock would be worth ₹18.38 (36% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-48%
Maximum Upside
+246%
Average Upside
63%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 10.4 ₹28.61
0%
3-Year Average 6.7 ₹18.38
-36%
5-Year Average 5.4 ₹14.97
-48%
Industry Average 19.5 ₹53.84
+88%
Country Average 35.9 ₹98.93
+246%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
IN
Reliance Power Ltd
NSE:RPOWER
118.3B INR 10.4 41.9
US
Vistra Corp
NYSE:VST
53.4B USD 557.4 71
SA
ACWA Power Co
SAU:2082
184.5B SAR 1 808.5 99.6
IN
Adani Power Ltd
NSE:ADANIPOWER
4.3T INR 87.9 37.4
IN
NTPC Ltd
NSE:NTPC
3.9T INR 17.3 16
CN
CGN Power Co Ltd
SZSE:003816
231.3B CNY -111 23.7
CN
China National Nuclear Power Co Ltd
SSE:601985
184.9B CNY -10.5 21.5
TH
Gulf Energy Development PCL
SET:GULF
859B THB -128.8 40.2
DE
Uniper SE
XETRA:UN0
17.2B EUR -8.9 12.3
US
Talen Energy Corp
NASDAQ:TLN
17B USD 38.2 -78.5
CN
SDIC Power Holdings Co Ltd
SSE:600886
109.1B CNY 38.7 16.7

Market Distribution

Lower than 86% of companies in India
Percentile
14th
Based on 1 703 companies
14th percentile
10.4
Low
0.1 — 20.7
Typical Range
20.7 — 64.8
High
64.8 —
Distribution Statistics
India
Min 0.1
30th Percentile 20.7
Median 35.9
70th Percentile 64.8
Max 50 585.9

Reliance Power Ltd
Glance View

Market Cap
118.3B 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
Overvaluation 1%
Intrinsic Value
Price ₹28.61
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