ITC Limited (500875) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of ITC Limited ₹229, price ₹257, upside -10.8%, quality 81 out of 100. Calculated from audited financials with 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, dashed = 300-day average. As of Sep 29, 2026.
How to read this chart
60‑month range ₹158.37 – ₹454.84 · fair‑value band ₹144.62 – ₹343.73 · the ₹257.00 price screens above the ₹229.21 fair value. Dashed = 300-day average. As of Sep 29, 2026.
ITC Limited engages in the fast moving consumer goods, hotels, paperboards, paper and packaging, agri, and information technology (IT) businesses in India and internationally.
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ITC Limited engages in the fast moving consumer goods, hotels, paperboards, paper and packaging, agri, and information technology (IT) businesses in India and internationally. The company primarily offers cigarettes and cigars; staples, spices, biscuits, confectionery and gums, snacks, noodles and pasta, beverages, dairy, ready to eat meals, chocolate, coffee, and frozen foods; personal care products; education and stationery products; safety matches; and incense sticks under various brands. It also retails formals and casual wear products, and other lifestyle products under the WLS brand. In addition, the company offers paper boards and specialty paper products; and packaging products, such as carton board, flexible, tobacco, and green packaging products, as well as operates approximately 100 hotels under the ITC Hotel, WelcomHotel, Fortune, and WelcomHeritage brands. Further, it exports feed ingredients, food grains, marine products, processed fruits, coffee products, leaf tobacco products, and spices; and offers IT services and solutions. Additionally, the company offers technology services and solutions for the banking, financial services, consumer packaged goods, manufacturing, travel, hospitality, and healthcare industries. The company also provides property infrastructure and real estate maintenance, business consulting, real estate development, and agro-forestry and other related services; manages and operates golf courses; fabricates and assembles machinery for tube filling, cartoning, wrapping, conveyor solutions, and engineering services; and produces and commercializes seed potato technology products. ITC Limited was incorporated in 1910 and is headquartered in Kolkata, India.
Stock analysis
ITC Limited (500875) currently trades at ₹257.00, while our model-based Fair Value estimate is ₹229.21, 10.8% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹536.70 per share, and 12 of the 26 models we run sit above the ₹257.00 price.
Bear case: the Asset-Based group reads lowest at ₹38.13, and 14 of the 26 models stay below the price. Evidence for this calculation is low.
Scenario range: ₹144.62 (bear) to ₹343.73 (bull), the price of ₹257.00 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 81/100 (high quality), in the Consumer Defensive sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
ITC Limited reported revenue of ₹816B in FY2025 versus ₹532B in FY2021, a compound +11.3%/yr. Reported net income was ₹347B in FY2025, compounding +27.5%/yr from FY2021.
Key figures
Market cap ₹3.2T (≈ $33.4B) · P/E ratio 16.8 · P/S ratio 7.14 · EPS (TTM) ₹11.15 · Dividend yield 3.9% · Net margin 42.6% · Return on equity 23.5% · Return on assets (EBIT) 25.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 58 out of 100 (medium confidence).
What moves the price
The share trades about 36% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at 25% fair-value upside, at −11%, 500875 screens richer than that median.
Fair Value models
Bear ₹144.62Fair Value ₹229.21Bull ₹343.73
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then (₹1.00 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.Evidence ⓘEvidence = 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.81/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+10.4%
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.
+7.8%
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.
+9.7%
Start year 2020 (pandemic). Over 10 years: +7.7% a year
Revenue growth 11 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.
+7.9%
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What shareholders gained per year (last 5 years), in INR ⓘ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. Basis: EBIT basis. 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.
≈ +10.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+6.6%
Dividend (yield on the price)3.9%
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.34% → 30%
⚠ Rate on operating basis: 2025 sits 80% above its own trend.
Price, fair value, quality and upside side by side.
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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.Tobacco · 37 stocks
Beats the industry median on 5/12 measures
A mixed picture versus its industry peers.
Valuation
Quality Score81 · Top 25%
Fair Value upside−21.9% · Below median
Profitability
Return on equity (TTM)23.5% · Above median
Return on assets13.1% · Top 25%
Net margin (TTM)29.5% · Top 25%
Operating margin (TTM)32.7% · Top 25%
Growth and dividend
Revenue growth−6.1% · Below median
Dividend yield (TTM)3.9% · Below median
Valuation Multiplesvs Tobacco median · lower = cheaper
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Cite: Fair Value Calculator (2026). "ITC Limited Fair Value". https://www.fairvalue-calculator.com/stock/500875
Frequently asked questions
Is ITC Limited (500875) overvalued or undervalued?
As of Sep 29, 2026, our model estimates a fair value of ₹229.21 versus a price of ₹257.00, about −11% upside (overvalued).
What is the fair value of 500875?
Our model-based fair value for ITC Limited is ₹229.21 (as of Sep 29, 2026), built from audited fundamentals. The current price: ₹257.00.
What is the quality score of 500875?
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 price target for ITC Limited (500875)?
Our model-based price target is the fair value of ₹229.21 (as of Sep 29, 2026) from 26 valuation models. Cautious scenario ₹144.62, optimistic scenario ₹343.73. It is a calculation from audited fundamentals, not an analyst target.
What is the ITC Limited stock forecast for 2026?
Our models put fair value at ₹229.21, about −11% upside versus a price of ₹257.00 (overvalued). Cautious scenario ₹144.62, optimistic scenario ₹343.73. The calculation is refreshed regularly with new filings.
What is the revenue of ITC Limited (500875)?
ITC Limited reported trailing-twelve-month revenue of about ₹465B (latest available figure, as of Sep 29, 2026).
Does ITC Limited pay a dividend?
ITC Limited currently shows a dividend yield of about 3.95% relative to its recent price (as of Sep 29, 2026).
What is the intrinsic value of ITC Limited (500875)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For ITC Limited it is ₹229.21 per share (as of Sep 29, 2026), against a price of ₹257.00. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is ITC Limited stock overvalued or undervalued in 2026?
As of Sep 29, 2026, 500875 trades above its calculated fair value: price ₹257.00, fair value ₹229.21, a gap of about −11% (overvalued). 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 500875?
No. The price is what the market pays today (₹257.00); the fair value is what the company's own numbers justify (₹229.21). For ITC Limited the two are ₹27.79 per share apart. That gap is exactly why we show both numbers side by side.
How much is ITC Limited worth?
The market values ITC Limited at about ₹3.2T (market capitalisation, as of Sep 29, 2026). Per share that is ₹257.00; our models calculate a fair value of ₹229.21 per share.
What do the bullish and bearish scenarios say about 500875?
Our models span a range for ITC Limited: cautious scenario ₹144.62, base ₹229.21, optimistic ₹343.73 per share (as of Sep 29, 2026, price ₹257.00). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 500875?
ITC Limited trades at a price-to-earnings ratio of 16.8 (as of Sep 29, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹229.21 is built from several models across several years. Other multiples: P/B 2.9, P/S 4.4, EV/EBITDA 12.3.
How solid is the balance sheet of ITC Limited (500875)?
Balance-sheet figures for ITC Limited (as of Sep 29, 2026): return on equity 23.5%. They feed the Quality Score of 81/100, which measures business quality independently of the share price.
How far is 500875 from its 52-week high?
ITC Limited trades at ₹257.00, about 36% below its 52-week high of ₹402.00 and at the low of ₹256.25 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹229.21 is for.
Which stocks are comparable to ITC Limited?
From the same area (Consumer Defensive) we also value Philip Morris International Inc, British American Tobacco p.l.c., Altria Group, KT&G 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 ITC Limited stock attractive at the current price?
The data as of Sep 29, 2026: price ₹257.00, calculated fair value ₹229.21 (−11%), Quality Score 81/100, from 26 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 500875 calculated?
We run ITC Limited through 26 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 ₹229.21, 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 14.5 % above its aggregate fair value. ITC Limited itself currently trades above fair value. 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 ITC Limited (500875)?
The closing price on Oct 1, 2026 was ₹257.00. Our model-based fair value is ₹229.21, about −11% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with ITC Limited right now?
A fairly wide model range (₹144.62 to ₹343.73) leaves room in how you read the outcome. Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.
Key figures of ITC Limited
How large is the market capitalisation of ITC Limited (500875)?
The market capitalisation of ITC Limited is ₹3.2T (≈ $33.4B). 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 ITC Limited (500875)?
The price-to-sales ratio of ITC Limited is 7.14 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of ITC Limited (500875)?
Earnings per share at ITC Limited are ₹11.15 (price ÷ EPS = P/E 16.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of ITC Limited (500875)?
The dividend yield of ITC Limited is 3.9% (payout 91.0%). 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 ITC Limited (500875)?
The net margin of ITC Limited is 42.6% (fiscal year 2025). 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 ITC Limited (500875)?
The return on equity (ROE) of ITC Limited is 23.5% (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 ITC Limited (500875)?
On an EBIT basis the return on assets of ITC Limited is 25.3% (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 ITC Limited (500875)?
The operating margin of ITC Limited is 32.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at ITC Limited (500875)?
Revenue at ITC Limited is growing −6.1% versus a year earlier (3y avg +7.8%). 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 ITC Limited (500875)?
Earnings per share at ITC Limited are growing −18.0% versus a year earlier. How much earnings per share grew versus a year earlier.
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