A valuation of NTPC (NTPC) built from its filed accounts — ten years of results, the method that fits this business, and what today's price already assumes.
The market expects NTPC to carry on much as it has.
At today’s share price, buyers are assuming NTPC earns about 13% a year on the money invested in it, from here on. Over the last ten years it actually earned about 13.2% a year. The two are close, so the share price does not need the business to improve or to stumble. It needs it to keep doing roughly what it already does.
Worked backwards from today's share price: the ROE NTPC must sustain to justify what it costs, against what its own record supports.
How to read this. The number on the left is what today’s share price quietly takes for granted about the future. The number on the right is what NTPC has actually managed over the last ten years. When the two are far apart, that gap is the bet you would be taking.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit as filed, in ₹ crore.
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| Mar 2017 | 82,042 | 10,714 | 13.1% |
| Mar 2018 | 88,083 | 10,502 | 11.9% |
| Mar 2019 | 1,00,287 | 14,034 | 14.0% |
| Mar 2020 | 1,09,464 | 11,902 | 10.9% |
| Mar 2021 | 1,11,531 | 14,969 | 13.4% |
| Mar 2022 | 1,32,669 | 16,960 | 12.8% |
| Mar 2023 | 1,76,207 | 17,121 | 9.7% |
| Mar 2024 | 1,78,525 | 21,332 | 11.9% |
| Mar 2025 | 1,88,138 | 23,953 | 12.7% |
| Mar 2026 | 1,87,379 | 27,546 | 14.7% |
A rate-regulated utility earns an allowed return on a regulated asset base, so capex builds the earning base rather than draining owner cash. A cash-flow model charges that capex and credits none of the regulated earnings it buys, so this is valued on excess return over its book.
Excess return — the correct lens for a regulated utilityThe same valuation, run side by side.
NTPC vs Adani PowerState-owned generation against the largest private producer.→NTPC vs ONGCBoth state-controlled energy, one upstream and one downstream of the meter.→NTPC vs Power GridTransmission rather than generation, on the same regulated return.At ₹345 the market is pricing in roughly 13.0% sustained ROE, against the ~13.2% its own record supports. That is close to what it has delivered, so the price is broadly consistent with the company simply continuing as it has.
It is computed from the filed financial statements using the method that fits this business (excess return), with every assumption shown alongside the result. The per-share figure and the full working are in the report.
A price-to-earnings of 12.1 and price-to-book of 1.64 sit against a return on equity of 14.0%. Whether that multiple is deserved depends on how durable the return is — which is exactly what the valuation tests.
Revenue went from ₹0.82 lakh crore to ₹1.87 lakh crore over the period shown, while return on equity moved from 10.3% to 13.7%. Growing scale on a rising return is a very different proposition from growing scale on a falling one.
The dividend yield is 2.42%, which is a meaningful part of the total return.
Debt to equity stands at 1.33, against 1.16 at the start of the period — the balance sheet is a core input to the cost of capital used here.
From published financial statements. The method is chosen to fit the business — a bank on excess return, a regulated utility on its rate base, a conglomerate by its parts — and every assumption is shown with its source. When the numbers do not support an estimate, no estimate is published. This is an educational research tool: it reports what the model computed and does not recommend buying or selling anything.
A cost of capital of 10.81%, growth drawn from the company's own record rather than from guidance, and the valuation method that fits the business. All of them are listed in the report, with how much each one moves the answer.