Finance · NSE: IRFC
Intrynsic's multi-model valuation estimates Indian Railway Finance Corporation Limited's fair value at ₹43 per share (range ₹30–₹43) against a market price of ₹88 - a gap of -51.5% (updated 24 July 2026). This is an estimated fair value based on stated assumptions, not investment advice.
Market price
₹88
close of 24 Jul 2026
Est. fair value
₹43
₹30–₹43
Gap
-51.5%
price vs estimate
Trading ~51% above our estimated fair-value range. Assumptions and per-model workings are below.
Indian Railway Finance Corporation borrows money to purchase trains and infrastructure that it leases to Indian Railways. The government guarantees its business model, making it a proxy for railway spending.
Finance · Finance
Over the last 3 years, revenue grew 4.5%/yr and profit grew 3.4%/yr.
Every ₹100 of shareholder money earned ₹12.4 in profit last year, vs a sector median of 10.8%.
Borrowing is core to a lender's business model — judge it on profitability and consistency instead.
The market price is above our estimated fair-value range (based on stated assumptions).
Returns on equity varied by about 1.0 percentage points over the last 5 years — steady.
Intrynsic values Indian Railway Finance Corporation Limited with 3 independent models and blends them into one estimated fair-value range. Every number below is an estimate based on the stated assumptions - change the assumptions and the estimate changes.
| Model | Estimated value | vs price | Weight |
|---|---|---|---|
| P/B + Excess ReturnBank Net Worth Method | ₹43 | -51% | - |
| DDMDividend Discount Method | ₹12 | -86% | - |
| Bank FCFE DCFBank Cash Flow Method | ₹30 | -66% | - |
Reverse DCF: today's market price implies the company must grow free cash flow about 15.5% a year for the next decade - versus 7.7% historical revenue growth.
| Revenue | ₹27,285 Cr | |
| Net profit | ₹7,009 Cr | |
| EPS | ₹5.36 | |
| Free cash flow | ₹-27,029 Cr | |
| ROE (latest) | 12.4% | |
| Revenue growth (CAGR) | 13.0% | |
| Profit growth (CAGR) | 25.1% |
Intrynsic's multi-model valuation estimates Indian Railway Finance Corporation Limited's fair value at ₹43 per share (range ₹30–₹43), last updated 24 July 2026. This is an estimate based on stated assumptions, not investment advice.
Indian Railway Finance Corporation Limited trades at ₹88 against Intrynsic's estimated fair value of ₹43 - the market price is 51% above the estimate, i.e. above our estimated fair-value range. Different assumptions produce different estimates; see the model breakdown above.
Indian Railway Finance Corporation Limited trades at about 16.4 times its latest annual earnings per share.
Indian Railway Finance Corporation borrows money to purchase trains and infrastructure that it leases to Indian Railways. The government guarantees its business model, making it a proxy for railway spending.
Intrynsic runs 3 valuation models for Indian Railway Finance Corporation Limited (P/B + Excess Return, DDM, Bank FCFE DCF) and blends them into one estimated fair-value range. Every assumption - growth, discount rate, terminal value - is shown openly on this page.
Disclaimer: Intrynsic provides educational and informational analysis only. Fair-value figures are estimates based on stated assumptions - they are not investment advice, research recommendations, or an offer to transact in any security. Intrynsic is not a SEBI-registered investment adviser or research analyst. Markets carry risk; please do your own research or consult a registered adviser before making investment decisions. Prices shown may be delayed end-of-day values. Terms · Privacy