ITC Limited (500875) Fair Value & Analysis
Consumer Defensive · IN · Market cap ₹2.1T (≈ $21.9B) · ISIN INE154A01025
What is ITC Limited really worth?
A strong business, but trading 24% above our fair value of ₹212.74.
Strengths
Risks
For context
Fair value as of: Aug 14, 2026
From 26 valuation models · updated 21 days ago
Share price −7.3% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
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.
Price vs Fair Value (5 years)
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 ₹264.10 price screens above the ₹212.74 fair value. Dashed = 300-day average. As of Aug 14, 2026.
Analysis
ITC Limited (500875) currently trades at ₹264.10, while our model-based Fair Value estimate is ₹212.74, implying the stock looks roughly 24.1% overvalued today. The Quality Score stands at 81/100 (high quality), in the Consumer Defensive sector. Bull case: the Growth Earnings group reads highest at a median of ₹536.70 per share, and 13 of the 26 models we run sit above the ₹264.10 price. Bear case: the Asset-Based group reads lowest at ₹38.13, and 13 of the 26 models stay below the price. Evidence for this calculation is 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 ₹264.10, 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 35% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 1% fair-value upside, at −19%, 500875 screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly ₹1.00 per share, which is 0.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: Growth Earnings (₹536.70) versus Asset-Based (₹38.13). Highest evidence: FCF DCF (78).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 14, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 76 · Market factors (momentum, volatility) 37
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
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.
500875 screens 24% overvalued. Compare with Philip Morris International Inc →
Peer Group
Other · 129 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.
Valuation Multiples vs Other median · lower = cheaper
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Tobacco stocks, each showing price versus our Fair Value estimate (as of Aug 14, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Philip Morris International Inc PM | $190.48 | $103.71 | −46% |
| British American Tobacco p.l.c. BTI | $56.13 | $61.07 | +9% |
| Altria Group MO | $68.65 | $81.81 | +19% |
| KT&G Corporation 033780 | 175,500 KRW | 110,656 KRW | −37% |
| PT Hanjaya Mandala Sampoerna Tbk, HMSP | 745.00 IDR | 1,041 IDR | +40% |
| Smoore International Holdings 6969 | HK$9.24 | HK$4.19 | −55% |
| Godfrey Phillips India Limited GODFRYPHLP | ₹2,160 | ₹1,194 | −45% |
| PT Gudang Garam Tbk, GGRM | 20,675 IDR | 16,988 IDR | −18% |
| TABAK TABAK | 19,100 CZK | 23,215 CZK | +22% |
| China Tobacco International (HK) Company 6055 | HK$23.86 | HK$24.09 | +1% |
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