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ITC Limited (ITC) Fair Value & Analysis

Consumer Defensive · IN · Market cap ₹3.5T

IL ITC Limited ITC · NSE
Price₹286.10
Fair Value₹282.04
Upside-1.4%
Quality81/100
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Healthy Growth
Highly profitable · 26.2% net margin
Low debt · generates free cash flow
5.17% dividend yield
Mixed vs. peers (8/15)
Wide moat 94/100
Evidence: High Range ₹178.89 – ₹365.79 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from ₹302.16 to ₹282.04 (−6.7%) since Jun 24, 2026. Share price +1.9% over the past month.

A strong business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (₹178.89 to ₹365.79) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹463.95 ₹152.75 Fair Value ₹282.04 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ₹152.75 – ₹463.95 · fair‑value band ₹178.89 – ₹365.79 · the ₹286.10 price screens above the ₹282.04 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

ITC Limited (ITC) currently trades at ₹286.10, while our model-based Fair Value estimate is ₹282.04, implying the stock looks roughly 1.4% fairly valued today. The Quality Score stands at 81/100 (high quality), in the Consumer Defensive sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, ITC Limited generated revenue of ₹789B at a net margin of 26.2%. Revenue declined 5.0% year over year. It earns a return on equity of 29.3%. Net debt stands at ₹17.6B. Fundamentals as of Jul 12, 2026

Our scenario range runs from ₹178.89 (bear case) to ₹365.79 (bull case); at ₹286.10, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 30% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 4% fair-value upside, at -1%, ITC screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹169.53 ₹291.49 ₹503.55 80
Residual Income ₹101.57 ₹120.07 ₹380.02 76
Rev-Margin DCF ₹97.56 ₹149.87 ₹214.99 74
All 26 models by family
DCF Models
FCF DCF ₹168.50 ₹294.09 ₹511.42 38
Owner Earnings ₹209.12 ₹365.07 ₹634.93 31
5Y Revenue Exit ₹97.56 ₹149.04 ₹214.86 39
5Y EBITDA Exit ₹186.01 ₹324.52 ₹493.61 41
5Y P/E Exit ₹215.53 ₹383.07 ₹569.13 38
10Y Revenue Exit ₹117.60 ₹173.43 ₹250.74 36
10Y EBITDA Exit ₹178.89 ₹302.16 ₹480.83 37
10Y P/E Exit ₹198.60 ₹345.12 ₹543.16 35
Earnings-Based
Graham-Dodd ₹112.29 ₹451.43 ₹613.90 54
Lynch FV ₹112.47 ₹160.67 ₹208.87 50
PEG = 1.0 ₹112.47 ₹160.67 ₹208.87 46
EPV ₹148.85 ₹175.04 ₹198.32 59
Dividend Discount
Gordon GGM ₹140.27 ₹306.24 ₹515.26 70
DDM Multi-Stage ₹140.27 ₹250.86 ₹319.15 61
Multiples
P/E Multiple ₹260.07 ₹346.77 ₹433.46 63
P/S Multiple ₹74.91 ₹99.88 ₹124.85 58
P/B Multiple ₹210.54 ₹280.72 ₹350.89 55
EV/EBIT ₹261.05 ₹347.91 ₹434.77 53
EV/EBITDA ₹213.04 ₹283.90 ₹354.76 54
EV/Revenue ₹66.01 ₹94.10 ₹122.19 43
Asset-Based
NCAV (Graham) ₹28.93 ₹38.77 ₹57.87 50
Growth DCF
Growth DCF ₹169.53 ₹291.49 ₹503.55 80
Rev-Margin DCF ₹97.56 ₹149.87 ₹214.99 74
Economic Profit
Residual Income ₹101.57 ₹120.07 ₹380.02 76
ROIC Compounder ₹165.98 ₹219.34 ₹286.42 72
Growth Earnings
Growth-Adj P/E ₹196.97 ₹281.38 ₹365.79 68

Widest divergence: DCF Models (₹302.16) versus Asset-Based (₹38.77). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹789B
Revenue growth (YoY) -5.0%
Net margin 26.2%
Return on equity 29.3%
Free cash flow ₹163B FY2026
P/E ratio 17.0
More key figures
Operating margin 36.5%
EPS (TTM) ₹16.51
Dividend yield 5.2%
EPS growth (YoY) -72.7%
Net debt ₹17.6B FY2026

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 81/100

Of which business quality 76 · Market factors (momentum, volatility) 41

Profitability 89
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 80
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

ITC Limited engages in the fast-moving consumer goods, paperboards, paper and packaging, and agri businesses in India and internationally.

Full company description

ITC Limited engages in the fast-moving consumer goods, paperboards, paper and packaging, and agri businesses in India and internationally. The company offers cigarettes and cigars; foods, including staples, spices, biscuits, confectionery and gums, snacks, noodles and pasta, beverages, dairy products, ready-to-eat meals, chocolates, coffee, and frozen foods; personal care products; education and stationery, such as balls, gels and roller pens, mechanical pencils, geometry boxes, erasers, sharpeners and rulers, wax crayons, plastic crayons, and sketch pens and oil pastels; safety matches; and agarbattis and dhoops under various brands, as well as operates a hotel under the ITC Grand Central name in Mumbai. It also provides virgin, recycled, coated barrier, cupstock base, liner, liquid packaging, antifungal, solid, and graphic boards, as well as specialty papers; surfacing, print base, barrier, overlay, and liner papers; plastic substitution products; and packaging products, including cartons, flexible, tobacco, and green packaging products. In addition, the company exports feed ingredients, food grains, marine products, processed fruits, coffee products, leaf tobacco products, and spices; and offers information technology services for the banking and financial services, healthcare, manufacturing, consumer goods, travel, and hospitality industries, as well as produces and commercializes seed potato technology products. Further, it provides property infrastructure maintenance; engineering, procurement and construction management and project management consultancy services; business consulting; and agro-forestry and other related services, as well as engages in the fabrication and assembly of machinery for tube filling, cartoning, wrapping, and conveyor solutions and engineering activities. ITC Limited was incorporated in 1910 and is headquartered in Kolkata, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

ITC Limited reported revenue of ₹782B in FY2026 versus ₹607B in FY2022, a compound +6.6%/yr. Reported net income was ₹207B in FY2026, compounding +7.9%/yr from FY2022.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹782B
Latest YoY
+3.8%
Avg. growth/yr (3Y)
+3.3%
Avg. growth/yr (5Y)
+9.7%
Avg. growth/yr (24Y)
+8.9%
Revenue +6.6%/yr
FY22 ₹607B
FY23 ₹709B
FY24 ₹679B
FY25 ₹753B
FY26 ₹782B
Net income +7.9%/yr
FY22 ₹152B
FY23 ₹192B
FY24 ₹205B
FY25 ₹347B
FY26 ₹207B

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Cite: Fair Value Calculator (2026). "ITC Limited Fair Value". https://www.fairvalue-calculator.com/stock/ITC

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Tobacco · 34 stocks

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.

Quality Score 81 · Top 25%
Fair Value upside −1% · Below median
Return on equity (TTM) 29% · Top 25%
Return on assets 18% · Top 25%
Net margin (TTM) 26% · Top 25%
Operating margin (TTM) 36% · Top 25%
Revenue growth -5% · Bottom 25%
Dividend yield (TTM) 5.2% · Above median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Tobacco median · lower = cheaper

P/E (TTM) 17.1× · Pricier than median
P/B 4.87× · Pricier than 75% of peers
P/S (TTM) 4.48× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than median
EV/EBITDA 13.0× · Pricier than 75% of peers
PEG 1.78× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 31 · sector 35
FUTURE 0 · sector 17
PAST 100 · sector 44
HEALTH 100 · sector 99
DIVIDEND 100 · sector 74

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Tobacco

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Tobacco stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Philip Morris International Inc PM $188.93 $103.71 -45%
British American Tobacco p.l.c. BTI $60.02 $61.14 +2%
Altria Group MO $68.44 $81.81 +20%
KT&G Corporation 033780 179,900 KRW 119,073 KRW -34%
PT Hanjaya Mandala Sampoerna Tbk, HMSP 695.00 IDR 1,193 IDR +72%
Godfrey Phillips India Limited GODFRYPHLP ₹2,337 ₹1,194 -49%
PT Gudang Garam Tbk, GGRM 16,375 IDR 16,988 IDR +4%
TABAK TABAK 18,480 CZK 23,215 CZK +26%
China Tobacco International (HK) Company 6055 HK$23.00 HK$24.09 +5%
Universal Corporation UVV $53.14 $27.50 -48%

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Frequently asked questions

Is ITC Limited (ITC) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ₹282.04 versus a price of ₹286.10, about −1% (fairly valued).
What is the fair value of ITC?
Our model-based fair value for ITC Limited is ₹282.04 (as of Jul 12, 2026), built from audited fundamentals. The current price is ₹286.10.
What is the quality score of ITC?
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 revenue of ITC Limited (ITC)?
ITC Limited reported trailing-twelve-month revenue of about ₹789B (latest available figure, as of Jul 12, 2026).
What is the net profit margin of ITC?
The net profit margin of ITC Limited is about 26.2%, meaning it keeps roughly 26.2% of revenue as net income. Based on the latest reported figures.
Does ITC Limited pay a dividend?
ITC Limited currently shows a dividend yield of about 5.17% relative to its recent price (as of Jul 12, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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