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NTPC Limited (NTPC) Fair Value & Analysis

Utilities · IN · Market cap ₹3.3T

NL NTPC Limited NTPC · BSE
Price₹340.05
Fair Value₹233.68
Upside-31.3%
Quality49/100
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Strengths

Solidly profitable · 14.5% net margin
Moderate debt · generates free cash flow
Ranks above peers (11/15)

Risks

!Trades 31% ABOVE our fair value of ₹233.68
!Expensive Growth
!Moderate moat 56/100
Expensive Growth
Solidly profitable · 14.5% net margin
Moderate debt · generates free cash flow
Ranks above peers (11/15)
Moderate moat 56/100
Evidence: High Range ₹195.08 – ₹467.95 Share as image

Fair value as of: Aug 22, 2026

From 25 valuation models · updated today

Share price −3.0% over the past month.

Below-average quality, and screening another 31% overvalued on our models.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹195.08 to ₹467.95) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹425.74 ₹82.63 Fair Value ₹233.68 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range ₹82.63 – ₹425.74 · fair‑value band ₹195.08 – ₹467.95 · the ₹340.05 price screens above the ₹233.68 fair value. Dashed = 300-day average. As of Aug 22, 2026.

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Analysis

NTPC Limited (NTPC) currently trades at ₹340.05, while our model-based Fair Value estimate is ₹233.68, implying the stock looks roughly 31.3% overvalued today. The Quality Score stands at 49/100 (below-average quality), in the Utilities 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, NTPC Limited generated revenue of ₹1.9T at a net margin of 14.5%. Revenue grew 8.0% year over year. It earns a return on equity of 13.7%. Net debt stands at ₹2.6T. Fundamentals as of Aug 22, 2026

Our scenario range runs from ₹195.08 (bear case) to ₹467.95 (bull case); at ₹340.05, 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 18% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -27% fair-value upside, at -31%, NTPC 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 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
Highest evidence
Growth DCF ₹3.80 80
Residual Income ₹203.98 ₹256.94 ₹619.18 76
Rev-Margin DCF ₹32.82 ₹227.01 ₹454.86 74
All 25 models by family
DCF Models
FCF DCF ₹26.87 38
5Y Revenue Exit ₹32.82 ₹233.00 ₹497.55 39
5Y EBITDA Exit ₹98.60 ₹358.87 ₹672.07 41
5Y P/E Exit ₹45.39 ₹257.05 ₹486.04 38
10Y Revenue Exit ₹141.67 ₹391.60 36
10Y EBITDA Exit ₹21.89 ₹232.19 ₹530.83 37
10Y P/E Exit ₹158.96 ₹382.42 35
Earnings-Based
Graham-Dodd ₹189.71 ₹655.78 ₹880.83 54
Lynch FV ₹151.74 ₹216.77 ₹281.81 50
PEG = 1.0 ₹151.74 ₹216.77 ₹281.81 46
EPV ₹133.41 ₹194.12 ₹248.09 59
Dividend Discount
Gordon GGM ₹86.89 ₹189.70 ₹319.18 70
DDM Multi-Stage ₹86.89 ₹153.93 ₹197.70 61
Multiples
P/E Multiple ₹376.63 ₹502.18 ₹627.72 63
P/S Multiple ₹355.71 ₹474.28 ₹592.85 58
P/B Multiple ₹282.87 ₹377.16 ₹471.45 55
EV/EBIT ₹234.97 ₹383.50 ₹532.04 53
EV/EBITDA ₹254.11 ₹409.03 ₹563.95 54
EV/Revenue ₹121.47 ₹263.80 ₹406.13 43
Asset-Based
NCAV (Graham) ₹104.77 ₹140.39 ₹209.53 50
Growth DCF
Growth DCF ₹3.80 80
Rev-Margin DCF ₹32.82 ₹227.01 ₹454.86 74
Economic Profit
Residual Income ₹203.98 ₹256.94 ₹619.18 76
ROIC Compounder ₹133.41 ₹194.12 ₹300.14 72
Growth Earnings
Growth-Adj P/E ₹329.83 ₹471.18 ₹612.54 68

Widest divergence: Growth Earnings (₹471.18) versus Asset-Based (₹140.39). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹1.9T
Revenue growth (YoY) +8.0%
Net margin 14.5%
Return on equity 13.7%
Free cash flow ₹68.5B FY2026
P/E ratio 10.4
More key figures
Operating margin 18.4%
EPS (TTM) ₹32.71
EPS growth (YoY) -1.6%
Net debt ₹2.6T FY2026

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 46 · Market factors (momentum, volatility) 51

Profitability 40
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 21
Balance sheet, leverage, solvency risk
Investment 35
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 82
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

NTPC Limited primarily engages in the generation and sale of bulk power to state power utilities in India. It operates through two segments: Generation of Energy and Others. The company generates power from coal, gas, liquid fuel, hydro, solar, nuclear, wind, thermal, and renewable energy sources.

Full company description

NTPC Limited primarily engages in the generation and sale of bulk power to state power utilities in India. It operates through two segments: Generation of Energy and Others. The company generates power from coal, gas, liquid fuel, hydro, solar, nuclear, wind, thermal, and renewable energy sources. It offers consultancy, project management, and supervision services. In addition, the company is involved in the energy trading, oil and gas exploration, and coal mining activities. Further, the company sells electricity to private DISCOMs operating in various states. NTPC Limited was incorporated in 1975 and is based in New Delhi, India.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

NTPC Limited reported revenue of ₹1.8T in FY2026 versus ₹1.3T in FY2022, a compound +8.5%/yr. Reported net income was ₹271B in FY2026, compounding +15.5%/yr from FY2022.

Growth Quality 60/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹1.8T
Latest YoY
−2.2%
Avg. growth/yr (3Y) 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.
+1.5%
Avg. growth/yr (5Y) 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.
+10.5%
Avg. growth/yr (12Y) 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.
+7.3%
Revenue +8.5%/yr
FY22 ₹1.3T
FY23 ₹1.8T
FY24 ₹1.8T
FY25 ₹1.9T
FY26 ₹1.8T
Net income +15.5%/yr
FY22 ₹152B
FY23 ₹173B
FY24 ₹198B
FY25 ₹197B
FY26 ₹271B

NTPC screens 31% overvalued. Compare with NextEra Energy, Inc →

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

Peer Group

Utilities - Regulated Electric · 155 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 49 · Above median
Fair Value upside −31% · Below median
Return on equity (TTM) 14% · Above median
Return on assets 4% · Above median
Net margin (TTM) 15% · Above median
Operating margin (TTM) 18% · Above median
Revenue growth 8% · Above median
Dividend yield (TTM) 2.7% · Below median
Debt / equity 1.02× · Higher than median

Valuation Multiples vs Utilities - Regulated Electric median · lower = cheaper

P/E (TTM) 10.4× · Cheaper than 75% of peers
P/B 1.62× · Pricier than median
P/S (TTM) 1.73× · Cheaper than median
P/FCF 0.5× · Cheaper than median
EV/EBITDA 9.1× · Cheaper than median
PEG 0.93× · Cheaper than 75% of peers

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 2
FUTURE40 · sector 32
PAST55 · sector 38
HEALTH49 · sector 53
DIVIDEND53 · sector 66

VALUE 0: the price sits above our fair-value range.

Values & ESG

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

None of the checked exposures detected

Similar stocks

10 more Utilities - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Aug 22, 2026).

Stock Price Fair Value vs Fair Value
NextEra Energy, Inc NEE $85.78 $32.94 -62%
National Grid plc NGG 61,175 ARS 44,886 ARS -27%
CEZ, a. s. CEZ 244.80 PLN 167.29 PLN -32%
Power Grid Corporation POWERGRID ₹264.80 ₹252.77 -5%
China National Nuclear Power Co 601985 ¥8.81 ¥6.73 -24%
CLP Holdings 0002 HK$78.50 HK$42.12 -46%
CK Infrastructure Holdings 1038 HK$66.55 HK$42.74 -36%
Enel Américas S.A ENELAM 86.93 CLP 119.19 CLP +37%
PT Chandra Daya Investasi TBK., CDIA 700.00 IDR 356.40 IDR -49%
CIGN CIGN 38.00 MXN 72.99 MXN +92%

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Frequently asked questions

Is NTPC Limited (NTPC) overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of ₹233.68 versus a price of ₹340.05, about −31% (overvalued).
What is the fair value of NTPC?
Our model-based fair value for NTPC Limited is ₹233.68 (as of Aug 22, 2026), built from audited fundamentals. The current price: ₹340.05.
What is the quality score of NTPC?
NTPC Limited has a Quality Score of 49/100. 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 NTPC Limited (NTPC)?
NTPC Limited reported trailing-twelve-month revenue of about ₹1.9T (latest available figure, as of Aug 22, 2026).
What is the net profit margin of NTPC?
The net profit margin of NTPC Limited is about 14.5%, meaning it keeps roughly 14.5% of revenue as net income. Based on the latest reported figures.

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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