ADANI POWER LTD DCF Valuation
ADANIPOWER · Power · Current price ₹195.85
ADANI POWER LTD cash-flow valuation
Our discounted cash flow (2-stage) values ADANI POWER LTD at ₹98 per share. Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFF path. It carries 70% of the weight in our published estimate of ₹98. A discounted cash flow is only as good as the cash-flow path it assumes, so the assumptions behind it are listed in full below.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with ADANI POWER LTD's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for ADANI POWER LTD. Nothing here is a target price or a forecast of where the share price will go.
The models agree and the inputs are well covered. Treat this as our firmest estimate.
Estimate range ₹88 – ₹107
Why this method for this business
The DCF model is appropriate for a capital-intensive utility business like Adani Power, which has stable cash flows and long-term growth potential. The EV/EBITDA model complements the DCF by providing a market-based valuation that reflects current market sentiment and multiples.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFF path
required inputs missing
- Discounted cash flow (2-stage) is the primary model due to its suitability for a utility business with predictable cash flows. Other models like P/B or P/E are not suitable for a capital-intensive business with high debt and low equity returns.
What was missing
- Lack of detailed project-specific cash flow projections
- Uncertainty around regulatory changes
- Limited forward analyst estimates for key metrics
What drives it
12 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 9,622 ₹cr
- Net debt
- 54,136.8 ₹cr
fcf_norm (median ≤5y positive)
total_debt − cash
- Discount rate (r)
- 12.06%
- Beta
- 0.8
WACC (computed)
bottom-up industry
- Stage-1 start growth
- 14%
- Fade shape
- linear
- Terminal growth (g)
- 5.5%
- Stage-1 years
- 14 y
pat_cagr_5y
lifecycle Mature
macro terminal × quality premium
lifecycle Mature horizon
- Lifecycle stage
- Mature
- Quality premium
- 1.1×
forecast engine (L20)
moat Wide + capital allocation
- Path
- FCFF
- Terminal-value fraction
- 0.475
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for ADANI POWER LTD: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on ADANI POWER LTD
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.