Vedanta Ltd
NSE:VEDL

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Vedanta Ltd
NSE:VEDL
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Price: 526 INR 1.33% Market Closed
Market Cap: 2.1T INR

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Nov 29, 2025.

Estimated DCF Value of one AFFLE stock is 729.92 INR. Compared to the current market price of 1 660.9 INR, the stock is Overvalued by 56%.

AFFLE DCF Value
Base Case
729.92 INR
Overvaluation 56%
DCF Value
Price
Worst Case
Base Case
Best Case
DCF Value: 729.92 INR

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 30B INR. The present value of the terminal value is 72.6B INR. The total present value equals 102.5B INR.
Forecast Period
Years
Discount Rate
%
Terminal Growth
%
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DCF Model
Year 1

forecasted

Year 2

forecasted

Year 3

forecasted

Year 4

forecasted

Year 5

forecasted

Terminal

forecasted

Net Income
Revenue1 6881 8651 9552 0722 1552 198
Absolute Value
Growth
Net Margin10.42%11.52%12.43%12.44%12.46%12.47%
Absolute Value
Net Income176215243258269274
Free Cash Flow to Equity
FCFE176215243258269274
Present Value
Discount Rate10.75%10.75%10.75%10.75%10.75%10.75%
Present Value1591751791711611 531
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 102.5B INR
Equity Value 102.5B INR
/ Shares Outstanding 140.5m
AFFLE DCF Value 729.92 INR
Overvalued by 56%

You are using the equity valuation model. In this approach, further calculations for converting firm value to equity value are not required. The present value, obtained in the present value calculation block, already represents the equity value.

The DCF value per share is derived by dividing the present value by the number of shares:

Present Value
102.5B INR
/
Number of Shares
140.5m
=
DCF Value
729.92 INR

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
1.7T 2.2T
Net Income
175.8B 274.2B

What is the DCF value of one VEDL stock?

Estimated DCF Value of one VEDL stock is 608.39 INR. Compared to the current market price of 526 INR, the stock is Undervalued by 14%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Vedanta Ltd's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 2.4T INR.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 608.39 INR per share.

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