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ITC Limited (500875) Fair Value & Analysis

Other · IN · Market cap ₹2.1T

IL ITC Limited 500875 · BSE
Price₹277.60
Fair Value₹212.74
Upside-23.4%
Quality81/100
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Mixed Growth
Highly profitable · 29.5% net margin
Low debt
5.43% dividend yield
Mixed vs. peers (7/13)
Wide moat 92/100
Evidence: High Range ₹159.64 – ₹298.05 Share as image

Fair value as of: Aug 14, 2026

From 26 valuation models · updated today

Share price +0.4% over the past month.

A strong business, but screening 23% overvalued on our models.

What matters now

  • A high-quality business (quality 81/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • A fairly wide model range (₹159.64 to ₹298.05) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹454.84 ₹152.85 Fair Value ₹212.74 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 14, 2026.

How to read this chart

60‑month range ₹152.85 – ₹454.84 · fair‑value band ₹159.64 – ₹298.05 · the ₹277.60 price screens above the ₹212.74 fair value. Dashed = 300-day average. As of Aug 14, 2026.

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Analysis

ITC Limited (500875) currently trades at ₹277.60, while our model-based Fair Value estimate is ₹212.74, implying the stock looks roughly 23.4% overvalued today. The Quality Score stands at 81/100 (high quality), in the Other sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, ITC Limited generated revenue of ₹465B at a net margin of 29.5%. Revenue declined 6.1% year over year. It earns a return on equity of 23.5%. The stock trades on a trailing P/E of 16.8 (as of Aug 14, 2026). Fundamentals as of Aug 14, 2026

Our scenario range runs from ₹159.64 (bear case) to ₹298.05 (bull case); at ₹277.60, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 32% below its 52-week high and 1% above its 52-week low, currently above its 200-day average. For context, the median of 10 Other peers we cover trades at -52% fair-value upside, at -23%, 500875 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹154.91 ₹238.85 ₹366.85 80
Residual Income ₹210.99 ₹293.43 ₹3,089 76
Rev-Margin DCF ₹95.31 ₹143.05 ₹199.38 74
All 26 models by family
DCF Models
FCF DCF ₹152.19 ₹247.37 ₹402.42 38
Owner Earnings ₹340.87 ₹554.30 ₹901.99 31
5Y Revenue Exit ₹95.31 ₹141.79 ₹199.94 39
5Y EBITDA Exit ₹146.05 ₹237.97 ₹345.69 41
5Y P/E Exit ₹266.34 ₹465.95 ₹679.10 38
10Y Revenue Exit ₹111.35 ₹159.54 ₹222.77 36
10Y EBITDA Exit ₹146.87 ₹228.35 ₹338.00 37
10Y P/E Exit ₹225.71 ₹391.44 ₹601.58 35
Earnings-Based
Graham-Dodd ₹192.02 ₹635.04 ₹849.53 54
Lynch FV ₹143.31 ₹204.72 ₹266.14 50
PEG = 1.0 ₹143.31 ₹204.72 ₹266.14 46
EPV ₹160.79 ₹189.10 ₹214.27 59
Dividend Discount
Gordon GGM ₹139.01 ₹303.48 ₹510.61 70
DDM Multi-Stage ₹139.01 ₹241.03 ₹316.27 61
Multiples
P/E Multiple ₹360.03 ₹480.04 ₹600.05 63
P/S Multiple ₹74.62 ₹99.49 ₹124.36 58
P/B Multiple ₹128.05 ₹170.74 ₹213.42 55
EV/EBIT ₹206.71 ₹275.51 ₹344.30 53
EV/EBITDA ₹159.64 ₹212.74 ₹265.84 54
EV/Revenue ₹69.98 ₹99.83 ₹129.67 43
Asset-Based
NCAV (Graham) ₹28.46 ₹38.13 ₹56.91 50
Growth DCF
Growth DCF ₹154.91 ₹238.85 ₹366.85 80
Rev-Margin DCF ₹95.31 ₹143.05 ₹199.38 74
Economic Profit
Residual Income ₹210.99 ₹293.43 ₹3,089 76
ROIC Compounder ₹173.18 ₹220.22 ₹274.61 72
Growth Earnings
Growth-Adj P/E ₹312.32 ₹446.17 ₹580.02 68

Widest divergence: Growth Earnings (₹446.17) versus Asset-Based (₹38.13). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹465B
Revenue growth (YoY) -6.1%
Net margin 29.5%
Return on equity 23.5%
P/E ratio 16.8 as of Aug 14, 2026
Operating margin 32.7%
More key figures
EPS (TTM) ₹11.15
Dividend yield 5.4%
EPS growth (YoY) -18.0%

Figures from reported company fundamentals · as of Aug 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 81/100

Of which business quality 76 · Market factors (momentum, volatility) 37

Profitability 91
Margins and returns on capital today
Quality Growth 69
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 85
Disciplined investing over empire-building
Low Volatility 92
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 1
Distance to the 52-week high (market factor)
Net Issuance 78
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

ITC Limited engages in the fast moving consumer goods, hotels, paperboards, paper and packaging, agri, and information technology (IT) businesses in India and internationally.

Full company description

ITC Limited engages in the fast moving consumer goods, hotels, paperboards, paper and packaging, agri, and information technology (IT) businesses in India and internationally. The company primarily offers cigarettes and cigars; staples, spices, biscuits, confectionery and gums, snacks, noodles and pasta, beverages, dairy, ready to eat meals, chocolate, coffee, and frozen foods; personal care products; education and stationery products; safety matches; and incense sticks under various brands. It also retails formals and casual wear products, and other lifestyle products under the WLS brand. In addition, the company offers paper boards and specialty paper products; and packaging products, such as carton board, flexible, tobacco, and green packaging products, as well as operates approximately 100 hotels under the ITC Hotel, WelcomHotel, Fortune, and WelcomHeritage brands. Further, it exports feed ingredients, food grains, marine products, processed fruits, coffee products, leaf tobacco products, and spices; and offers IT services and solutions. Additionally, the company offers technology services and solutions for the banking, financial services, consumer packaged goods, manufacturing, travel, hospitality, and healthcare industries. The company also provides property infrastructure and real estate maintenance, business consulting, real estate development, and agro-forestry and other related services; manages and operates golf courses; fabricates and assembles machinery for tube filling, cartoning, wrapping, conveyor solutions, and engineering services; and produces and commercializes seed potato technology products. ITC Limited was incorporated in 1910 and is headquartered in Kolkata, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ITC Limited reported revenue of ₹816B in FY2025 versus ₹532B in FY2021, a compound +11.3%/yr. Reported net income was ₹347B in FY2025, compounding +27.5%/yr from FY2021.

Growth Quality 81/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
₹816B
Latest YoY
+10.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.7%
Avg. growth/yr (11Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.9%
Revenue +11.3%/yr
FY21 ₹532B
FY22 ₹652B
FY23 ₹765B
FY24 ₹739B
FY25 ₹816B
Net income +27.5%/yr
FY21 ₹132B
FY22 ₹152B
FY23 ₹192B
FY24 ₹205B
FY25 ₹347B

500875 screens 23% overvalued. Compare with Federal Home Loan Mortgage Corporation →

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Cite: Fair Value Calculator (2026). "ITC Limited Fair Value". https://www.fairvalue-calculator.com/stock/500875

Peer Group

Other · 386 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 81 · Top 25%
Fair Value upside −23% · Below median
Return on equity (TTM) 24% · Top 25%
Return on assets 13% · Top 25%
Net margin (TTM) 29% · Top 25%
Operating margin (TTM) 33% · Top 25%
Revenue growth -6% · Bottom 25%
Dividend yield (TTM) 5.4% · Top 25%

Valuation Multiples vs Other median · lower = cheaper

P/E (TTM) 16.8× · Pricier than median
P/B 2.94× · Pricier than 75% of peers
P/S (TTM) 4.43× · Pricier than 75% of peers
EV/EBITDA 12.3× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 2 · sector 10
FUTURE 0 · sector 0
PAST 94 · sector 0
HEALTH 100 · sector 97
DIVIDEND 100 · sector 0

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Other stocks, each showing price versus our Fair Value estimate (as of Aug 14, 2026).

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Federal Home Loan Mortgage Corporation FREJO $15.58 $51.90 +233%
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540376 540376 ₹4,044 ₹1,538 -62%
540777 540777 ₹536.00 ₹149.72 -72%
Lupin Limited 500257 ₹2,265 ₹1,983 -12%
Dabur India Limited 500096 ₹413.80 ₹122.93 -70%
540719 540719 ₹1,835 ₹872.41 -52%
Britannia Industries Limited 500825 ₹5,626 ₹1,289 -77%
524804 524804 ₹1,665 ₹1,303 -22%

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Frequently asked questions

Is ITC Limited (500875) overvalued or undervalued?
As of Aug 14, 2026, our model estimates a fair value of ₹212.74 versus a price of ₹277.60, about −23% (overvalued).
What is the fair value of 500875?
Our model-based fair value for ITC Limited is ₹212.74 (as of Aug 14, 2026), built from audited fundamentals. The current price is ₹277.60.
What is the quality score of 500875?
ITC Limited has a Quality Score of 81/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of ITC Limited (500875)?
ITC Limited reported trailing-twelve-month revenue of about ₹465B (latest available figure, as of Aug 14, 2026).
What is the net profit margin of 500875?
The net profit margin of ITC Limited is about 29.5%, meaning it keeps roughly 29.5% of revenue as net income. Based on the latest reported figures.
Does ITC Limited pay a dividend?
ITC Limited currently shows a dividend yield of about 5.43% relative to its recent price (as of Aug 14, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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