MRF Limited (MRF) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of MRF Limited ₹125,849, price ₹124,580, upside +1.0%, quality 61 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 24, 2026.
How to read this chart
60‑month range ₹63,526 – ₹162,289 · fair‑value band ₹84,303 – ₹157,311 · the ₹124,580 price screens below the ₹125,849 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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MRF Limited, together with its subsidiaries, engages in the manufacture and sale of rubber products in India and internationally.
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MRF Limited, together with its subsidiaries, engages in the manufacture and sale of rubber products in India and internationally. The company provides tires for passenger cars, two wheelers, fighter aircraft, farm, trucks, OTR, SCV, LCV, pick up, three wheeler, MCV, ICV, and tubes and valves products; rubber products, such as tubes, flaps, and tread rubber products; and manufactures specialty coatings. It also involved in the paints and coats, sports goods, and motorsports businesses. In addition, the company operates MRF T&S that provide computerized nitrogen inflation, tubeless repair, wheel alignment, wheel balancing and tire changing; MRF TireTok which offers robotic wheel alignment, vehicle safety test lane, diagnostic wheel balancing, semi-automatic tyre changer, A/C recovery and recharging, electronic headlight aligner, nitrogen generator membrane type, and special two-wheeler tire changer; MRF Tyredrome; MRF FASST that offers wheels removal and refitment, and tire mounting and de-mounting services; and MRF MuscleZone shops, as well as provides training for light and heavy commercial vehicle driving. The company was founded in 1946 and is based in Chennai, India.
Stock analysis
MRF Limited (MRF) currently trades at ₹124,580, while our model-based Fair Value estimate is ₹125,849, implying the stock looks roughly 1.0% fairly valued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of ₹149,475 per share, and 12 of the 26 models we run sit above the ₹124,580 price.
Bear case: the Asset-Based group reads lowest at ₹33,135, and 14 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹84,303 (bear) to ₹157,311 (bull), the price of ₹124,580 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 61/100 (solid quality), in the Consumer Cyclical sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
MRF Limited reported revenue of ₹311B in FY2026 versus ₹193B in FY2022, a compound +12.7%/yr. Reported net income was ₹24.3B in FY2026, compounding +38.0%/yr from FY2022.
Key figures
Market cap ₹528B (≈ $5.5B) · P/E ratio 21.8 · P/S ratio 1.69 · EPS (TTM) ₹5,727 · Dividend yield 0.2% · Net margin 7.8% · Return on equity 12.3% · Return on assets (EBIT) 21.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The share trades about 23% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −38% fair-value upside, at 1%, MRF screens cheaper than that median.
Fair Value models
Bear ₹84,303Fair Value ₹125,849Bull ₹157,311
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 2026 figures (about 6 months old). Earnings retained since then (₹2,678 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.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.87/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+10.6%
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.
+10.6%
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.
+14.0%
Start year 2021 (pandemic). Over 10 years: +8.8% a year
Revenue growth 22 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.
+12.1%
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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. 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.
+13.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+13.7%
Dividend (yield on the price)0.2%
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.14% vs 4%, picking up
Profit margin 2004 to 2026 ⓘ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.2% → 10%
Start year 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).
+8.9%
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.
+7.8%
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 +4.6% a year for the price and +3.5% for the forecasts.
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.Auto Parts · 695 stocks
Beats the industry median on 10/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score61 · Top 25%
Fair Value upside+1% · Above median
Profitability
Return on equity (TTM)12% · Top 25%
Return on assets6% · Top 25%
Net margin (TTM)8% · Above median
Operating margin (TTM)11% · Top 25%
Growth and dividend
Revenue growth13% · Above median
Dividend yield (TTM)0.2% · Bottom 25%
Balance sheet
Debt / equity0.01× · Lowest 25%
Valuation Multiplesvs Auto Parts median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "MRF Limited Fair Value". https://www.fairvalue-calculator.com/stock/MRF
Frequently asked questions
Is MRF Limited (MRF) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of ₹125,849 versus a price of ₹124,580, about +1% upside (fairly valued).
What is the fair value of MRF?
Our model-based fair value for MRF Limited is ₹125,849 (as of Sep 24, 2026), built from audited fundamentals. The current price: ₹124,580.
What is the quality score of MRF?
MRF Limited has a Quality Score of 61/100. 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 MRF Limited (MRF)?
Our model-based price target is the fair value of ₹125,849 (as of Sep 24, 2026) from 26 valuation models. Cautious scenario ₹84,303, optimistic scenario ₹157,311. It is a calculation from audited fundamentals, not an analyst target.
What is the MRF Limited stock forecast for 2026?
Our models put fair value at ₹125,849, about +1% upside versus a price of ₹124,580 (fairly valued). Cautious scenario ₹84,303, optimistic scenario ₹157,311. The calculation is refreshed regularly with new filings.
What is the revenue of MRF Limited (MRF)?
MRF Limited reported trailing-twelve-month revenue of about ₹311B (latest available figure, as of Sep 24, 2026).
Does MRF Limited pay a dividend?
MRF Limited currently shows a dividend yield of about 0.19% relative to its recent price (as of Sep 24, 2026).
What growth is priced into MRF Limited (MRF)?
For today's price to be fair in a discounted-cash-flow model, MRF Limited would have to grow free cash flow by +8.9 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +14.0 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of MRF use?
Our models discount MRF Limited at 10.9 %: a base by market capitalisation (mid), damped by beta 0.15, 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 MRF Limited that is +8.9 % per year a year over ten years, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has MRF Limited (MRF) delivered so far?
Over the past 5 years revenue at MRF Limited grew +14.0 % a year. The price currently implies +8.9 % 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 MRF Limited (MRF) growing?
The median revenue growth in the sector is +2.6 % a year. That is the yardstick for the growth priced into MRF Limited (+8.9 % 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 MRF Limited (MRF)?
The free-cash-flow yield on the price is 5.66 %: that much free cash flow MRF Limited produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of MRF Limited (MRF)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For MRF Limited it is ₹125,849 per share (as of Sep 24, 2026), against a price of ₹124,580. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is MRF Limited stock overvalued or undervalued in 2026?
As of Sep 24, 2026, MRF trades below its calculated fair value: price ₹124,580, fair value ₹125,849, a gap of about +1% (fairly valued). 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 MRF?
No. The price is what the market pays today (₹124,580); the fair value is what the company's own numbers justify (₹125,849). For MRF Limited the two are ₹1,269 per share apart. That gap is exactly why we show both numbers side by side.
How much is MRF Limited worth?
The market values MRF Limited at about ₹528B (market capitalisation, as of Sep 24, 2026). Per share that is ₹124,580; our models calculate a fair value of ₹125,849 per share.
What do the bullish and bearish scenarios say about MRF?
Our models span a range for MRF Limited: cautious scenario ₹84,303, base ₹125,849, optimistic ₹157,311 per share (as of Sep 24, 2026, price ₹124,580). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of MRF?
MRF Limited trades at a price-to-earnings ratio of 21.8 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹125,849 is built from several models across several years. Other multiples: P/B 2.5, P/S 1.7, EV/EBITDA 10.4.
How solid is the balance sheet of MRF Limited (MRF)?
Balance-sheet figures for MRF Limited (as of Sep 24, 2026): return on equity 12.3%, debt of 0.01 per unit of equity. They feed the Quality Score of 61/100, which measures business quality independently of the share price.
How far is MRF from its 52-week high?
MRF Limited trades at ₹124,580, about 23% below its 52-week high of ₹162,289 and 2% above the low of ₹122,595 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of ₹125,849 is for.
Which stocks are comparable to MRF Limited?
From the same area (Consumer Cyclical) we also value O'Reilly Automotive, Inc, AutoZone, Inc, Hyundai Mobis Co, Fuyao Glass Industry Group, 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 MRF Limited stock attractive at the current price?
The data as of Sep 24, 2026: price ₹124,580, calculated fair value ₹125,849 (+1%), Quality Score 61/100, 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 MRF calculated?
We run MRF 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 ₹125,849, 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 14.1 % above its aggregate fair value. MRF Limited currently trades 1 % 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 MRF Limited (MRF)?
The closing price on Sep 23, 2026 was ₹124,580. Our model-based fair value is ₹125,849, about +1% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with MRF Limited right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range (₹84,303 to ₹157,311) leaves room in how you read the outcome.
Where does the earnings growth of MRF Limited (MRF) come from?
Earnings per share at MRF Limited grew +3.6 % a year from 2016 to 2026. Broken into its drivers: revenue per share +9.1 %, EBIT margin −5.0 %, tax rate +0.9 %, residual (interest, one-offs) −1.0 %. 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 MRF Limited
How large is the market capitalisation of MRF Limited (MRF)?
The market capitalisation of MRF Limited is ₹528B (≈ $5.5B). 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 MRF Limited (MRF)?
The price-to-sales ratio of MRF Limited is 1.69 (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 MRF Limited (MRF)?
Earnings per share at MRF Limited are ₹5,727 (price ÷ EPS = P/E 21.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of MRF Limited (MRF)?
The dividend yield of MRF Limited is 0.2% (payout 4.1%). 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 MRF Limited (MRF)?
The net margin of MRF Limited is 7.8% (fiscal year 2026). 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 MRF Limited (MRF)?
The return on equity (ROE) of MRF Limited is 12.3% (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 MRF Limited (MRF)?
On an EBIT basis the return on assets of MRF Limited is 21.5% (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 MRF Limited (MRF)?
The operating margin of MRF Limited is 10.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at MRF Limited (MRF)?
Revenue at MRF Limited is growing +13.4% versus a year earlier (3y avg +10.6%). 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 MRF Limited (MRF)?
Earnings per share at MRF Limited are growing +37.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does MRF Limited (MRF) carry?
The net debt of MRF Limited is ₹10.2B (fiscal year 2026, ≈ 0.3 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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