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Power Finance Corporation (PFC) Fair Value & Analysis

Financial Services · IN · Market cap ₹1.3T

PF Power Finance Corporation PFC · NSE
Price₹418.00
Fair Value₹810.20
Upside+93.8%
Quality58/100
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Healthy Growth
Highly profitable · 54.3% net margin
High debt · generates free cash flow
4.60% dividend yield
Ranks above peers (9/14)
Wide moat 71/100
Evidence: High Range ₹607.65 – ₹1,251 Share as image

Fair value as of: Jul 13, 2026

From 21 valuation models · updated 25 days ago

Fair value updated Jul 13, 2026, revised from ₹865.30 to ₹810.20 (−6.4%) since Jun 26, 2026. Share price +1.2% over the past month.

A solid business, screening 94% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (₹607.65). The market is more pessimistic than our downside scenario.
  • Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (₹607.65 to ₹1,251) leaves room in how you read the outcome.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

₹527.66 ₹68.53 Fair Value ₹810.20 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range ₹68.53 – ₹527.66 · fair‑value band ₹607.65 – ₹1,251 · the ₹418.00 price screens below the ₹810.20 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

Power Finance Corporation (PFC) currently trades at ₹418.00, while our model-based Fair Value estimate is ₹810.20, implying the stock looks roughly 93.8% undervalued today. We read business quality at 58/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Power Finance Corporation generated revenue of ₹477B at a net margin of 54.3%. Revenue declined 15.4% year over year. It earns a return on equity of 20.5%. Net debt stands at ₹10.1T. Fundamentals as of Jul 13, 2026

Our scenario range runs from ₹607.65 (bear case) to ₹1,251 (bull case); at ₹418.00, the current price sits below 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 14% below its 52-week high and 29% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -41% fair-value upside, at 94%, PFC screens cheaper 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 ₹2,503 ₹7,801 80
Residual Income ₹539.87 ₹709.61 ₹2,957 76
Rev-Margin DCF ₹73.07 74
All 21 models by family
DCF Models
FCF DCF ₹1,874 ₹7,841 38
Owner Earnings ₹2,765 31
5Y Revenue Exit ₹47.32 39
5Y EBITDA Exit ₹1,677 41
5Y P/E Exit ₹1,374 38
10Y Revenue Exit ₹938.71 36
10Y EBITDA Exit ₹358.58 ₹2,667 37
10Y P/E Exit ₹278.18 ₹2,380 35
Earnings-Based
Graham-Dodd ₹533.70 ₹3,360 ₹4,693 54
Lynch FV ₹969.14 ₹1,384 ₹1,800 50
PEG = 1.0 ₹969.14 ₹1,384 ₹1,800 46
Dividend Discount
Gordon GGM ₹259.00 ₹565.45 ₹951.39 70
DDM Multi-Stage ₹259.00 ₹463.19 ₹589.29 61
Multiples
P/E Multiple ₹1,177 ₹1,570 ₹1,962 63
P/S Multiple ₹640.23 ₹853.64 ₹1,067 58
P/B Multiple ₹905.84 ₹1,208 ₹1,510 55
Asset-Based
NCAV (Graham) ₹201.30 ₹269.74 ₹402.60 50
Growth DCF
Growth DCF ₹2,503 ₹7,801 80
Rev-Margin DCF ₹73.07 74
Economic Profit
Residual Income ₹539.87 ₹709.61 ₹2,957 76
Growth Earnings
Growth-Adj P/E ₹1,351 ₹1,929 ₹2,508 68

Widest divergence: Growth DCF (₹2,503) versus Asset-Based (₹269.74). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹477B
Revenue growth (YoY) -15.4%
Net margin 54.3%
Return on equity 20.5%
Free cash flow ₹551B FY2026
P/E ratio 5.2
More key figures
Operating margin 93.3%
EPS (TTM) ₹78.50
Dividend yield 4.6%
EPS growth (YoY) +10.8%
Net debt ₹10.1T FY2026

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 53 · Market factors (momentum, volatility) 56

Profitability 40
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 1
Balance sheet, leverage, solvency risk
Investment 53
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 43
Price trend over the last 3–12 months (market factor)
52W Momentum 48
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

Power Finance Corporation Limited, a non-banking finance company, provides financial products and related advisory services to the power, logistics, and infrastructure sectors in India.

Full company description

Power Finance Corporation Limited, a non-banking finance company, provides financial products and related advisory services to the power, logistics, and infrastructure sectors in India. The company offers fund-based financial policies and products, such as project-specific funding; a revamped distribution sector scheme; funding for clearance of dues-LPS; a revolving bill payment facility; guidelines for solar and wind power generation projects, as well as for funding private sector independent transmission projects (ITP); a debt refinancing policy; a prepayment policy for solar wind ITP and other projects; takeout financing, asset acquisition, bridge loans, buyer's lines of credit, credit facilities for the purchase of power through power exchanges, and conventional and energy-saving projects; and project, medium, and short-term loan services. Its fund-based financial policies/products also include grants/interest-free loans for studies/consultancies; lease financing for the purchase of equipment and wind power projects; a line of credit for the import of coal; a policy for underwriting of debt; and financial assistance to distribution franchisees. The company also provides non-fund-based policies/products comprising guarantees, letters of comfort, and a policy for guarantees for credit enhancement; and non-fund-based consultancy services. Power Finance Corporation Limited was incorporated in 1986 and is headquartered in New Delhi, India.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Power Finance Corporation reported revenue of ₹1.1T in FY2026 versus ₹749B in FY2022, a compound +10.7%/yr. Reported net income was ₹259B in FY2026, compounding +16.6%/yr from FY2022.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹1.1T
Latest YoY
+6.0%
Avg. growth/yr (3Y)
+14.8%
Avg. growth/yr (5Y)
+9.5%
Avg. growth/yr (22Y)
+19.6%
Revenue +10.7%/yr
FY22 ₹749B
FY23 ₹745B
FY24 ₹915B
FY25 ₹1.1T
FY26 ₹1.1T
Net income +16.6%/yr
FY22 ₹140B
FY23 ₹159B
FY24 ₹198B
FY25 ₹230B
FY26 ₹259B

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Cite: Fair Value Calculator (2026). "Power Finance Corporation Fair Value". https://www.fairvalue-calculator.com/stock/PFC

Peer Group

Credit Services · 333 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 58 · Above median
Fair Value upside +94% · Top 25%
Return on equity (TTM) 20% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 54% · Top 25%
Operating margin (TTM) 93% · Top 25%
Revenue growth -15% · Bottom 25%
Dividend yield (TTM) 4.6% · Above median
Debt / equity 7.31× · Higher than 75% of peers

Valuation Multiples vs Credit Services median · lower = cheaper

P/E (TTM) 5.2× · Cheaper than 75% of peers
P/B 1.01× · Pricier than median
P/S (TTM) 2.81× · Pricier than median
P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 25.7× · Pricier 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.

VALUE 100 · sector 35
FUTURE 0 · sector 39
PAST 82 · sector 31
HEALTH 0 · sector 59
DIVIDEND 92 · sector 51

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

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

Similar stocks

10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).

Stock Price Fair Value vs Fair Value
Visa Inc V $348.97 $204.19 -41%
Mastercard Incorporated MA $537.70 $221.87 -59%
American Express Company AXP $358.44 $206.40 -42%
Bajaj Finance Limited BAJFINANCE ₹1,056 ₹397.61 -62%
Shriram Finance Limited SHRIRAMFIN ₹1,024 ₹553.83 -46%
Cholamandalam Investment and Finance Company CHOLAFIN ₹1,808 ₹796.52 -56%
Tata Capital Limited TATACAP ₹360.60 ₹229.85 -36%
Muthoot Finance Limited MUTHOOTFIN ₹3,129 ₹3,463 +11%
Indian Railway Finance Corporation IRFC ₹88.41 ₹69.72 -21%
REC Limited RECLTD ₹352.45 ₹704.90 +100%

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Frequently asked questions

Is Power Finance Corporation (PFC) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of ₹810.20 versus a price of ₹418.00, about +94% (undervalued).
What is the fair value of PFC?
Our model-based fair value for Power Finance Corporation is ₹810.20 (as of Jul 13, 2026), built from audited fundamentals. The current price is ₹418.00.
What is the quality score of PFC?
Power Finance Corporation has a Quality Score of 58/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Power Finance Corporation (PFC)?
Power Finance Corporation reported trailing-twelve-month revenue of about ₹477B (latest available figure, as of Jul 13, 2026).
What is the net profit margin of PFC?
The net profit margin of Power Finance Corporation is about 54.3%, meaning it keeps roughly 54.3% of revenue as net income. Based on the latest reported figures.
Does Power Finance Corporation pay a dividend?
Power Finance Corporation currently shows a dividend yield of about 4.37% relative to its recent price (as of Jul 13, 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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