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NTPC Ltd
NSE:NTPC

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NTPC Ltd
NSE:NTPC
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Price: 396.15 INR -0.46% Market Closed
Market Cap: ₹3.8T

EV/OCF

7.6
Current
26%
Cheaper
vs 3-y average of 10.3

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
7.6
=
Enterprise Value
₹5.5T
/
Operating Cash Flow
₹736.7B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
7.6
=
Enterprise Value
₹5.5T
/
Operating Cash Flow
₹736.7B

Valuation Scenarios

NTPC Ltd is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (10.3), the stock would be worth ₹538.04 (36% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+209%
Average Upside
81%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 7.6 ₹396.15
0%
3-Year Average 10.3 ₹538.04
+36%
5-Year Average 9.4 ₹489.23
+23%
Industry Average 11.7 ₹612.22
+55%
Country Average 23.4 ₹1 224.91
+209%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
IN
NTPC Ltd
NSE:NTPC
3.9T INR 7.6 15.9
US
Vistra Corp
NYSE:VST
52.4B USD 17.4 69.6
SA
ACWA Power Co
SAU:2082
184.5B SAR 45.8 99.6
IN
Adani Power Ltd
NSE:ADANIPOWER
3.9T INR 17.4 34.1
CN
CGN Power Co Ltd
SZSE:003816
226.7B CNY 15 23.2
TH
Gulf Energy Development PCL
SET:GULF
877.7B THB 56.3 41
CN
China National Nuclear Power Co Ltd
SSE:601985
180.4B CNY 15.2 21.3
DE
Uniper SE
XETRA:UN0
17.3B EUR -17.5 12.5
US
Talen Energy Corp
NASDAQ:TLN
15.1B USD 30.1 -69.5
CN
SDIC Power Holdings Co Ltd
SSE:600886
107.3B CNY 8.4 16.4
CN
Huaneng Power International Inc
SSE:600011
96.6B CNY 5.5 8.3

Market Distribution

Lower than 88% of companies in India
Percentile
12th
Based on 2 183 companies
12th percentile
7.6
Low
0.1 — 14.7
Typical Range
14.7 — 39.6
High
39.6 —
Distribution Statistics
India
Min 0.1
30th Percentile 14.7
Median 23.4
70th Percentile 39.6
Max 28 676

NTPC Ltd
Glance View

NTPC Ltd., often regarded as the powerhouse of India's energy sector, is a leading player in the realm of power generation. Originating its journey with a humble beginning in the late 1970s, NTPC was set up as a public sector enterprise by the Indian government with a vision to address the energy demands of a growing economy. Over the years, NTPC has evolved into the largest energy conglomerate in India, adeptly balancing the blend of traditional fossil fuels and renewable energy sources. The company strategically harnesses coal, gas, hydro, and renewables, thereby ensuring a diversified energy mix that aims to deliver consistent and reliable electricity. By being at the forefront of the technological advancements and innovations in power generation, NTPC maintains its edge in energy efficiency and sustainable development. In its operational model, NTPC generates revenue primarily from selling electricity to state utilities and other bulk consumers. With its comprehensive network of power plants strategically distributed across various locations, it capitalizes on economies of scale, lower production costs, and efficient resource management. The company enters into long-term Power Purchase Agreements (PPAs) with state-owned distribution companies, securing a stable income stream and minimizing market volatility. Advancing with its commitment to sustainability, NTPC is actively increasing its footprint in the renewable energy segment, underscoring its strategic move to adapt to the global shift towards cleaner energy. This dual-focus on maintaining substantial coal-based power while scaling up renewable initiatives positions NTPC at a vital junction of meeting India's energy needs while addressing environmental concerns.

NTPC Intrinsic Value
396.53 INR
Fairly Valued
Intrinsic Value
Price ₹396.15
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