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ITC Limited (ITC) Fair Value & Analysis

Consumer Defensive · IN · Market cap ₹3.5T (≈ $37.4B) · ISIN INE154A01025

What is ITC Limited really worth?

IL ITC Limited ITC · NSE
Price₹264.10
Fair Value₹244.79
Upside−7.3%
Quality81/100

A strong business, currently priced close to our fair value of ₹244.79.

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Strengths

Healthy Growth (revenue 5y +9.7 %/yr)
Highly profitable · 26.2% net margin
Low debt · generates free cash flow
Wide moat 94/100

Risks

!Mixed vs. peers (8/15)
!Weak on valuation: 24 out of 100

For context

·5.43% dividend yield
Evidence: High Range ₹148.58 – ₹352.90

Fair value as of: Aug 22, 2026

From 26 valuation models · updated 14 days ago

Share price −8.0% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (₹148.58 to ₹352.90) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹463.95 ₹158.34 Fair Value ₹244.79 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range ₹158.34 – ₹463.95 · fair‑value band ₹148.58 – ₹352.90 · the ₹264.10 price screens above the ₹244.79 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 22, 2026.

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Analysis

ITC Limited (ITC) currently trades at ₹264.10, while our model-based Fair Value estimate is ₹244.79, implying the stock looks roughly 7.9% fairly valued today. The Quality Score stands at 81/100 (high quality), in the Consumer Defensive sector. Bull case: the DCF Models group reads highest at a median of ₹302.16 per share, and 14 of the 26 models we run sit above the ₹264.10 price. Bear case: the Asset-Based group reads lowest at ₹38.77, and 12 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, ITC Limited generated revenue of ₹789B at a net margin of 26.2%. Revenue declined 5.0% year over year. It earns a return on equity of 29.3%. Net debt stands at ₹17.6B. Fundamentals as of Aug 22, 2026

Our scenario range runs from ₹148.58 (bear case) to ₹352.90 (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 −7%, ITC screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹0.9291 per share, which is 0.4 % 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.

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
FCF DCF best evidence ₹168.50 ₹294.09 ₹511.42 78
Growth DCF ₹169.53 ₹291.49 ₹503.55 76
Owner Earnings ₹209.12 ₹365.07 ₹634.93 74
All 26 models by family
DCF Models
FCF DCF best evidence ₹168.50 ₹294.09 ₹511.42 78
Owner Earnings ₹209.12 ₹365.07 ₹634.93 74
5Y Revenue Exit ₹97.56 ₹149.04 ₹214.86 72
5Y EBITDA Exit ₹186.01 ₹324.52 ₹493.61 74
5Y P/E Exit ₹215.53 ₹383.07 ₹569.13 70
10Y Revenue Exit ₹117.60 ₹173.43 ₹250.74 67
10Y EBITDA Exit ₹178.89 ₹302.16 ₹480.83 67
10Y P/E Exit ₹198.60 ₹345.12 ₹543.16 62
Earnings-Based
Graham-Dodd ₹112.29 ₹451.43 ₹613.90 64
Lynch FV ₹112.47 ₹160.67 ₹208.87 61
PEG = 1.0 ₹112.47 ₹160.67 ₹208.87 57
EPV ₹148.85 ₹175.04 ₹198.32 74
Dividend Discount
Gordon GGM ₹140.27 ₹306.24 ₹515.26 65
DDM Multi-Stage ₹140.27 ₹250.86 ₹319.15 66
Multiples
P/E Multiple ₹260.07 ₹346.77 ₹433.46 63
P/S Multiple ₹74.91 ₹99.88 ₹124.85 58
P/B Multiple ₹210.54 ₹280.72 ₹350.89 55
EV/EBIT ₹261.05 ₹347.91 ₹434.77 66
EV/EBITDA ₹213.04 ₹283.90 ₹354.76 67
EV/Revenue ₹66.01 ₹94.10 ₹122.19 53
Asset-Based
NCAV (Graham) ₹28.93 ₹38.77 ₹57.87 54
Growth DCF
Growth DCF ₹169.53 ₹291.49 ₹503.55 76
Rev-Margin DCF ₹97.56 ₹149.87 ₹214.99 72
Economic Profit
Residual Income ₹101.57 ₹120.07 ₹380.02 65
ROIC Compounder ₹165.98 ₹219.34 ₹286.42 72
Growth Earnings
Growth-Adj P/E ₹196.97 ₹281.38 ₹365.79 67

Widest divergence: DCF Models (₹302.16) versus Asset-Based (₹38.77). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 16.0
P/S ratio 4.23 P/E × margin
EPS (TTM) ₹16.51 price ÷ EPS = P/E 16.0
Dividend yield 5.4% payout 86.9%
Net margin 26.5% FY2026
Return on equity 29.3% TTM
More key figures
Profitability
Return on assets (EBIT) 35.4% avg 5y
Operating margin 36.5% TTM
Growth
Revenue (TTM) ₹789B TTM
Revenue growth (YoY) −5.0% 3y avg +3.3%
EPS growth (YoY) −72.7%
Balance sheet & cash flow
Free cash flow ₹163B FY2026
Net debt ₹17.6B FY2026 · ≈ 0.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 81/100

Of which business quality 76 · Market factors (momentum, volatility) 38

Profitability 89
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 80
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.

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, paperboards, paper and packaging, and agri businesses in India and internationally.

Full company description

ITC Limited engages in the fast-moving consumer goods, paperboards, paper and packaging, and agri businesses in India and internationally. The company offers cigarettes and cigars; foods, including staples, spices, biscuits, confectionery and gums, snacks, noodles and pasta, beverages, dairy products, ready-to-eat meals, chocolates, coffee, and frozen foods; personal care products; education and stationery, such as balls, gels and roller pens, mechanical pencils, geometry boxes, erasers, sharpeners and rulers, wax crayons, plastic crayons, and sketch pens and oil pastels; safety matches; and agarbattis and dhoops under various brands, as well as operates a hotel under the ITC Grand Central name in Mumbai. It also provides virgin, recycled, coated barrier, cupstock base, liner, liquid packaging, antifungal, solid, and graphic boards, as well as specialty papers; surfacing, print base, barrier, overlay, and liner papers; plastic substitution products; and packaging products, including cartons, flexible, tobacco, and green packaging products. In addition, the company exports feed ingredients, food grains, marine products, processed fruits, coffee products, leaf tobacco products, and spices; and offers information technology services for the banking and financial services, healthcare, manufacturing, consumer goods, travel, and hospitality industries, as well as produces and commercializes seed potato technology products. Further, it provides property infrastructure maintenance; engineering, procurement and construction management and project management consultancy services; business consulting; and agro-forestry and other related services, as well as engages in the fabrication and assembly of machinery for tube filling, cartoning, wrapping, and conveyor solutions and engineering activities. 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

FY2022 – FY2026 · reported fiscal years

ITC Limited reported revenue of ₹782B in FY2026 versus ₹607B in FY2022, a compound +6.6%/yr. Reported net income was ₹207B in FY2026, compounding +7.9%/yr from FY2022.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹782B
Latest YoY
+3.8%
Avg. revenue 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.
+3.3%
Avg. revenue 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. revenue growth/yr (24Y) 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.
+8.9%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+11.3% (5.9 + 5.4)
Revenue +6.6%/yr
FY22 ₹607B
FY23 ₹709B
FY24 ₹679B
FY25 ₹753B
FY26 ₹782B
Net income +7.9%/yr
FY22 ₹152B
FY23 ₹192B
FY24 ₹205B
FY25 ₹347B
FY26 ₹207B
Character of growth · EPS growth decomposed (2015-2026) +10.8 % p.a.
Revenue per share +6.6 %

of which total revenue +7.0 % · buybacks/dilution −0.3 %

EBIT margin −2.1 %
Tax rate +2.1 %
Residual (interest, one-offs) +3.9 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Tobacco · 36 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 −7% · Below median
Return on equity (TTM) 29% · Top 25%
Return on assets 18% · Top 25%
Net margin (TTM) 26% · Top 25%
Operating margin (TTM) 36% · Top 25%
Revenue growth −5% · Below median
Dividend yield (TTM) 5.4% · Above median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Tobacco median · lower = cheaper

P/E (TTM) 16.0× · Pricier than median
P/B 4.87× · Pricier than median
P/S (TTM) 4.48× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than median
EV/EBITDA 13.0× · Pricier than median
PEG 1.78× · Pricier than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE24 · sector 38
FUTURE0 · sector 25
PAST100 · sector 51
HEALTH100 · sector 97
DIVIDEND100 · sector 78

Values & ESG

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

Tobacco

Similar stocks

10 more Tobacco stocks, each showing price versus our Fair Value estimate (as of Aug 22, 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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Frequently asked questions

Is ITC Limited (ITC) overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of ₹244.79 versus a price of ₹264.10, about −7% upside (fairly valued).
What is the fair value of ITC?
Our model-based fair value for ITC Limited is ₹244.79 (as of Aug 22, 2026), built from audited fundamentals. The current price: ₹264.10.
What is the quality score of ITC?
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 (ITC)?
ITC Limited reported trailing-twelve-month revenue of about ₹789B (latest available figure, as of Aug 22, 2026).
What is the net profit margin of ITC?
The net profit margin of ITC Limited is about 26.2%, meaning it keeps roughly 26.2% 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 22, 2026).
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