TORNTPOWER.NS
Torrent Power Ltd
Price:  
1,440.8 
INR
Volume:  
160,058
India | Electric Utilities

TORNTPOWER.NS Fair Value

2.9 %
Upside

What is the fair value of TORNTPOWER.NS?

As of 2025-07-08, the Fair Value of Torrent Power Ltd (TORNTPOWER.NS) is 1,482.69 INR. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 1,440.8 INR, the upside of Torrent Power Ltd is 2.9%.

Is TORNTPOWER.NS a good investment?

With the market price of 1,440.8 INR and our fair value calculation, Torrent Power Ltd (TORNTPOWER.NS) is a good investment. Investing in TORNTPOWER.NS stocks now will result in a potential gain of 2.9%.

1,440.8 INR
Stock Price
1,482.69 INR
Fair Price
FAIR VALUE CALCULATION

TORNTPOWER.NS Fair Value

Peter Lynch's formula is:

TORNTPOWER.NS Fair Value
= Earnings Growth Rate x TTM EPS
TORNTPOWER.NS Fair Value
= 25 x 59.31
TORNTPOWER.NS Fair Value
= 1,482.69

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
03-202103-202203-202303-202403-20255Y Avg
Net income12,9094,54021,174.318,332.329,88517,368
YoY growth9.9%-64.8%366.4%-13.4%63%72.2%

TORNTPOWER.NS Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Power Grid Corporation of India Ltd2,752,04816.4136.54-53.9%
Tata Power Company Ltd1,281,97012.4310.69-22.6%
Adani Transmission Ltd998,53112.566.4-92.6%
SJVN Ltd387,4782.110.58-89.3%
Contact Energy Ltd7,2490.32.12-76.5%
CESC Ltd239,30510.351.64-71.4%
Mosenergo PAO131,0140.10.26-92.2%
Genesis Energy Ltd2,5310.13.761.1%
MOESK PAO71,2340.36.96376.2%
Mezhregional'naya Raspredelitel'naya Setevaya Kompaniya Urala OAO54,4690.12.81350.8%

TORNTPOWER.NS Fair Value - Key Data

Market Cap (mil)726,019
P/E24.3x
Forward P/E19.6x
EPS59.31
Avg earnings growth rate72.2%
TTM earnings29,885

TORNTPOWER.NS Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.