ITI Limited Valuation
ITI · Telecommunication · Current price ₹242.1
Is ITI Limited undervalued?
We estimate the fair value of ITI Limited at ₹92 per share, against a market price of ₹263. That puts the share price about -65.0% above our estimate, at low confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Discounted cash flow (2-stage) (₹92). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for ITI Limited spans ₹83 to ₹101. That range is wide, which is the honest signal here: read the range rather than the single number. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Valuation multiples
ITI Limited trades at a P/E of 79.6x and a P/B of 15.6x. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
How we got this fair value
Every number below is part of the same estimate for ITI Limited. Nothing here is a target price or a forecast of where the share price will go.
The inputs are thin or the models disagree sharply. This is our least reliable kind of estimate, so read the range rather than the single number.
Estimate range ₹83 – ₹101
Why this method for this business
The DCF model is appropriate for ITI's capital-intensive telecom equipment business, while EV/EBITDA captures its asset-light and operational efficiency characteristics.
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); FCFE path
required inputs missing
- Relative PE is not used due to lack of reliable peer data
- FCF-based models are not used due to erratic cash flow patterns
What was missing
- Lack of forward-looking analyst estimates
- Limited historical data on EBITDA margins
- Insufficient data on capital allocation efficiency
What drives it
12 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 433.5 ₹cr
- Net debt
- 740.6 ₹cr
fcf_norm (median ≤5y positive)
total_debt − cash
- Discount rate (r)
- 14.03%
- Beta
- 0.95
COE (building-block)
bottom-up industry
- Stage-1 start growth
- 20%
- Fade shape
- linear
- Terminal growth (g)
- 4.93%
- Stage-1 years
- 10 y
pat_cagr_5y
lifecycle Growth
macro terminal × quality premium
lifecycle Growth horizon
- Lifecycle stage
- Growth
- Quality premium
- 0.986×
forecast engine (L20)
moat None + capital allocation
- Path
- FCFE
- Terminal-value fraction
- 0.488
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 ITI Limited: 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 methodologyUnderstand the ratios
More on ITI Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.