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Fast Moving Consumer Goods · NSE: ITC

ITC Limited - Fair Value & Intrinsic Value Estimate

Intrynsic's multi-model valuation estimates ITC Limited's fair value at ₹358 per share (range ₹238–₹659) against a market price of ₹283 - a gap of +26.2% (updated 24 July 2026). This is an estimated fair value based on stated assumptions, not investment advice.

Low ₹238Below fair-value est.High ₹659

Market price

₹283

close of 24 Jul 2026

Est. fair value

₹358

₹238–₹659

Gap

+26.2%

price vs estimate

Trading ~26% below our estimated fair-value range. Assumptions and per-model workings are below.

What ITC Limited does

ITC is a consumer conglomerate best known for cigarettes, which fund its growing packaged-foods, hotels, paper and agri businesses. It is one of India's most consistent dividend payers.

Fast Moving Consumer Goods · Diversified FMCG

Health signals

GrowthRevenue +3.6%/yr (3y)Weak

Over the last 3 years, revenue grew 3.6%/yr and profit grew 2.6%/yr.

ProfitabilityROE 29.0%Good

Every ₹100 of shareholder money earned ₹29.0 in profit last year, vs a sector median of 8.8%.

DebtD/E 0.03Good

It holds more cash than debt.

Valuation+26% vs estimateGood

The market price is below our estimated fair-value range (based on stated assumptions).

Quality₹77 cash per ₹100 profitGood

About ₹77 of every ₹100 of reported profit turned into free cash (median, last 5 years); operating cash flow was positive in 5 of 5 years.

The valuation, explained- models, weights & assumptions ▾

Intrynsic values ITC Limited with 4 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.

ModelEstimated valuevs priceWeight
DCFFuture Cash Flows Method₹274-3%-
EV/EBITDAIndustry Comparison Method₹442+56%-
P/E MultipleEarnings Multiple Method₹659+132%-
DDMDividend Discount Method₹238-16%-

Key assumptions

Risk-free rate
7.0%
Equity risk premium
6.5%
Beta
0.677
Cost of equity
11.4%
Terminal growth
5.0%
Tax rate
25%

Reverse DCF: today's market price implies the company must grow free cash flow about 14.9% a year for the next decade - versus 6.8% historical revenue growth.

Key financialsFY17–FY26

Full statements & analysis →
Revenue₹78,868 Cr
Net profit₹21,018 Cr
EPS₹16.51
Free cash flow₹16,281 Cr
ROE (latest)29.0%
Revenue growth (CAGR)7.0%
Profit growth (CAGR)8.0%

Peers

Hindustan Unilever Limited₹5,10,989 CrP/E 34.0ROE 30.9%Fair-value estimate →
Hindustan Foods Limited₹7,006 CrP/E 46.4ROE 12.8%
Davangere Sugar Company Limited₹472 CrP/E 55.0ROE 1.8%
Godavari Biorefineries Limited₹1,402 CrP/E 397.0ROE 0.5%
Ask AI about ITC LimitedChat with Intrynsic's research agent about results, risks and filings.Sign up free →Track it in your watchlistFair-value alerts, result-day briefs and portfolio analytics.Sign up free →See the full model workingsEvery assumption, per-model trace, reverse DCF and peer lens.Sign up free →

Frequently asked questions

What is ITC Limited's intrinsic value?

Intrynsic's multi-model valuation estimates ITC Limited's fair value at ₹358 per share (range ₹238–₹659), last updated 24 July 2026. This is an estimate based on stated assumptions, not investment advice.

Is ITC Limited overvalued or undervalued?

ITC Limited trades at ₹283 against Intrynsic's estimated fair value of ₹358 - the market price is 26% below the estimate, i.e. below our estimated fair-value range. Different assumptions produce different estimates; see the model breakdown above.

What is ITC Limited's P/E ratio?

ITC Limited trades at about 17.2 times its latest annual earnings per share.

What does ITC Limited do?

ITC is a consumer conglomerate best known for cigarettes, which fund its growing packaged-foods, hotels, paper and agri businesses. It is one of India's most consistent dividend payers.

How is ITC Limited's fair value calculated?

Intrynsic runs 4 valuation models for ITC Limited (DCF, EV/EBITDA, P/E Multiple, DDM) 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

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