Muthoot Finance Limited (MUTHOOTFIN) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Muthoot Finance Limited stock ₹5,420, price ₹2,839, upside +90.9%, quality 62 out of 100. Rating: strongly undervalued. Calculated from audited financials with 13 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range ₹865.73 – ₹4,057 · fair‑value band ₹1,690 – ₹9,611 · the ₹2,839 price screens below the ₹5,420 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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Muthoot Finance Limited, a non-banking financing company, provides gold loans in India.
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The company offers various loans, including personal, small and corporate business, SME, and vehicle, as well as loans against property; insurance products, such as health, home, vehicle, life, travel, shop, and group; housing and micro finance; and mutual funds.
It also provides gold flexi credit; PAN card; money transfer; non-convertible debentures; national pension scheme; digital and cashless payments; bank mapping; and other custom offerings and milligram rewards.
In addition, the company generates electric power through three windmills with a combined capacity of 3.75 MW in Tamil Nadu. Muthoot Finance Limited was founded in 1887 and is headquartered in Kochi, India.
Stock analysis
Muthoot Finance Limited (MUTHOOTFIN) currently trades at ₹2,839, while our model-based Fair Value estimate is ₹5,420, implying the stock looks roughly 48% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of ₹8,250 per share, and 8 of the 13 models we run sit above the ₹2,839 price.
Bear case: the Asset-Based group reads lowest at ₹652.46, and 5 of the 13 models stay below the price. Data coverage for this calculation is high.
Scenario range: ₹1,690 (bear) to ₹9,611 (bull), the price of ₹2,839 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 62/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Muthoot Finance Limited reported revenue of ₹313B in FY2026 versus ₹122B in FY2022, a compound +26.5%/yr. Reported net income was ₹106B in FY2026, compounding +27.4%/yr from FY2022.
Key figures
Market cap ₹1.1T (≈ $12.1B) Large · P/E ratio 9.3 · P/S ratio 5.56 · EPS (TTM) ₹303.86 · Dividend yield 1.1% · Net margin 55.5% · Return on equity 31.7% · Return on assets (EBIT) 6.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 82 out of 100 (low confidence).
What moves the price
The share trades about 30% below its 52-week high and 20% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −1% fair-value upside, at 91%, MUTHOOTFIN screens cheaper than that median.
Fair Value models
Bear₹1,690Fair Value ₹5,420Bull₹9,611
Price ₹2,839 · Upside +90.9%
Capped: our models arrive at a very high value here. We deliberately show a more cautious Fair Value.
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹164.32 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+54.3%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+37.9%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+22.0%
Start year 2021 (pandemic). Over 10 years: +20.3% a year
Revenue growth 20 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+36.2%
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What shareholders gained per year (last 5 years), in INR (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. 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.
+20.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+19.7%
Dividend (yield on the price)1.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.22.7% vs 29.3%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.44% → 36%
2026 sits 145% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+4.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+3.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +0.1% a year for the price and −0.5% for the forecasts.
AI conclusion: The company's unmatched branch network and deep customer trust underpin its gold loan leadership, while intensifying competition from banks and lenders poses the main challenge to sustaining that position.
Main risk: Diversified NBFCs such as Bajaj Finance, L&T Finance, Tata Capital and Aditya Birla Capital are rapidly adding gold-loan branches and offerings, which could erode Muthoot Finance's pricing power and margins in its core secured lending business.
Bull case: Muthoot Finance could leverage its unmatched branch network and customer trust to retain market share while using its own AI tools to lower acquisition costs and offset competitive and regulatory pressures on margins.
Bear case: If new entrants and banks continue aggressive expansion while RBI rules sustain higher operational burdens, Muthoot Finance might face persistent yield compression and slower customer acquisition in its gold-loan segment.
Muthoot Finance leads in gold loans backed by its unmatched branch network and deep customer trust in a market where only a tiny share of India's huge gold holdings serves as collateral. This positions the business for further expansion into productive credit. Yet intensifying competition from banks and other lenders could test that edge as the sector grows. Do its structural advantages outweigh the risks from wider players crowding in?
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Peer Groupⓘ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.Credit Services · 286 stocks
Beats the industry median on 9/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score62 · Above median
Fair Value upside+90.9% · Top 25%
Profitability
Return on equity (12 months)31.7% · Top 25%
Return on assets5.4% · Top 25%
Net margin (12 months)55.5% · Top 25%
Operating margin (12 months)74.6% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)35.3% · Top 25%
Dividend yield (12 months)1.1% · Below median
Balance sheet
Debt / equity1.38× · Above median
Valuation Multiplesvs Credit Services median · lower = cheaper
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Is Muthoot Finance Limited (MUTHOOTFIN) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of ₹5,420 versus a price of ₹2,839, about +91% upside (undervalued).
What is the fair value of MUTHOOTFIN?
Our model-based fair value for Muthoot Finance Limited is ₹5,420 (as of Nov 4, 2026), built from audited fundamentals. The current price: ₹2,839.
What is the quality score of MUTHOOTFIN?
Muthoot Finance Limited has a Quality Score of 62/100. 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 price target for Muthoot Finance Limited (MUTHOOTFIN)?
Our model-based price target is the fair value of ₹5,420 (as of Nov 4, 2026) from 13 valuation models. Cautious scenario ₹1,690, optimistic scenario ₹9,611. It is a calculation from audited fundamentals, not an analyst target.
What is the Muthoot Finance Limited stock forecast for 2026?
Our models put fair value at ₹5,420, about +91% upside versus a price of ₹2,839 (undervalued). Cautious scenario ₹1,690, optimistic scenario ₹9,611. The calculation is refreshed regularly with new filings.
What is the revenue of Muthoot Finance Limited (MUTHOOTFIN)?
Muthoot Finance Limited reported trailing-twelve-month revenue of about ₹205B (latest available figure, as of Nov 4, 2026).
Does Muthoot Finance Limited pay a dividend?
Muthoot Finance Limited currently shows a dividend yield of 1.06% relative to its recent price (as of Nov 4, 2026).
What growth is priced into Muthoot Finance Limited (MUTHOOTFIN)?
For today's price to be fair in a discounted-cash-flow model, Muthoot Finance Limited would have to grow free cash flow by +4.2 % per year for five years (discount rate 10.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +22.0 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of MUTHOOTFIN use?
Our models discount Muthoot Finance Limited at 10.5 %: a base by market capitalisation (large), damped by beta 0.56, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Muthoot Finance Limited that is +4.2 % per year a year over ten years, using the same discount rate (10.5 %) and the same formula as our fair value.
How much growth has Muthoot Finance Limited (MUTHOOTFIN) delivered so far?
Over the past 5 years revenue at Muthoot Finance Limited grew +22.0 % a year. The price currently implies +4.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Muthoot Finance Limited (MUTHOOTFIN) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into Muthoot Finance Limited (+4.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Muthoot Finance Limited (MUTHOOTFIN)?
The free-cash-flow yield on the price is 10.32 %: that much free cash flow Muthoot Finance Limited produces per unit of market value. When it exceeds the discount rate of our models (10.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Muthoot Finance Limited (MUTHOOTFIN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Muthoot Finance Limited it is ₹5,420 per share (as of Nov 4, 2026), against a price of ₹2,839. It is the blended result of 13 valuation models (cash flow, earnings, asset, dividend).
Is Muthoot Finance Limited stock overvalued or undervalued in 2026?
As of Nov 4, 2026, MUTHOOTFIN trades below its calculated fair value: price ₹2,839, fair value ₹5,420, a gap of about +91% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of MUTHOOTFIN?
No. The price is what the market pays today (₹2,839); the fair value is what the company's own numbers justify (₹5,420). For Muthoot Finance Limited the two are ₹2,581 per share apart. That gap is exactly why we show both numbers side by side.
How much is Muthoot Finance Limited worth?
The market values Muthoot Finance Limited at about ₹1.1T (market capitalisation, as of Nov 4, 2026). Per share that is ₹2,839; our models calculate a fair value of ₹5,420 per share.
What do the bullish and bearish scenarios say about MUTHOOTFIN?
Our models span a range for Muthoot Finance Limited: cautious scenario ₹1,690, base ₹5,420, optimistic ₹9,611 per share (as of Nov 4, 2026, price ₹2,839). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of MUTHOOTFIN?
Muthoot Finance Limited trades at a price-to-earnings ratio of 9.3 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹5,420 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 12.2. Other multiples: P/B 2.9, P/S 5.6, EV/EBITDA 10.7.
How solid is the balance sheet of Muthoot Finance Limited (MUTHOOTFIN)?
Balance-sheet figures for Muthoot Finance Limited (as of Nov 4, 2026): return on equity 31.7%, debt of 1.38 per unit of equity. They feed the Quality Score of 62/100, which measures business quality independently of the share price.
How far is MUTHOOTFIN from its 52-week high?
Muthoot Finance Limited trades at ₹2,839, about 30% below its 52-week high of ₹4,057 and 20% above the low of ₹2,373 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of ₹5,420 is for.
Which stocks are comparable to Muthoot Finance Limited?
From the same area (Financial Services) we also value Visa Inc, Mastercard Incorporated, American Express Company, Capital One Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Muthoot Finance Limited stock attractive at the current price?
The data as of Nov 4, 2026: price ₹2,839, calculated fair value ₹5,420 (+91%), Quality Score 62/100, from 13 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of MUTHOOTFIN calculated?
We run Muthoot Finance Limited through 13 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹5,420, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Muthoot Finance Limited currently trades 48% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Muthoot Finance Limited (MUTHOOTFIN)?
The closing price on Nov 5, 2026 was ₹2,839. Our model-based fair value is ₹5,420, about +91% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Muthoot Finance Limited right now?
The model range is unusually wide (₹1,690 to ₹9,611). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Muthoot Finance Limited (MUTHOOTFIN) come from?
Earnings per share at Muthoot Finance Limited grew +25.1 % a year from 2015 to 2026. Broken into its drivers: revenue per share +17.8 %, EBIT margin +4.7 %, tax rate +1.9 %, residual (interest, one-offs) −0.4 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Muthoot Finance Limited
How large is the market capitalisation of Muthoot Finance Limited (MUTHOOTFIN)?
The market capitalisation of Muthoot Finance Limited is ₹1.1T (≈ $12.1B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Muthoot Finance Limited (MUTHOOTFIN)?
The price-to-sales ratio of Muthoot Finance Limited is 5.56 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Muthoot Finance Limited (MUTHOOTFIN)?
Earnings per share at Muthoot Finance Limited are ₹303.86 (price ÷ EPS = P/E 9.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Muthoot Finance Limited (MUTHOOTFIN)?
The dividend yield of Muthoot Finance Limited is 1.1% (payout 9.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Muthoot Finance Limited (MUTHOOTFIN)?
The net margin of Muthoot Finance Limited is 55.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Muthoot Finance Limited (MUTHOOTFIN)?
The return on equity (ROE) of Muthoot Finance Limited is 31.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Muthoot Finance Limited (MUTHOOTFIN)?
On an EBIT basis the return on assets of Muthoot Finance Limited is 6.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Muthoot Finance Limited (MUTHOOTFIN)?
The operating margin of Muthoot Finance Limited is 74.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Muthoot Finance Limited (MUTHOOTFIN)?
Revenue at Muthoot Finance Limited is growing +35.3% versus a year earlier (3y avg +37.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Muthoot Finance Limited (MUTHOOTFIN)?
Earnings per share at Muthoot Finance Limited are growing +38.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Muthoot Finance Limited (MUTHOOTFIN) carry?
The net debt of Muthoot Finance Limited is ₹1.4T (fiscal year 2026, ≈ 11.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 4, 2026