Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 8.17%, lower than industry average of 9.16%.

Growth Trajectory

Profitability

In the growth phase company makes 18.05% profit on every dollar of sales, higher than industry average of 7.18%.

Profitability Trajectory

Risk Profile

Investors expect at least 9.72% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
2.61T USD
Equity Value
2.85T USD
FCF Yield
5128.76%
Average ROIC
39.33%
Cost of Capital
9.39%
P/E Ratio
0.24x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues1.19T USD1.10T USD
Operating Income or EBIT234.05B USD215.24B USD
Interest Expense6.62B USD5.53B USD
Book Value Of Equity696.55B USD682.63B USD
Book Value Of Debt62.76B USD57.56B USD
Cash and Marketable Securities303.51B USD272.55B USD
Number of Shares Outstanding2.71B--
Minority interests80M USD0 USD
Current Stock Price16.20 USD--
Effective Tax Rate25.00%--
Marginal Tax Rate30.00%--

Performance vs Industry

Revenue Growth
-0.58%
8.58%Company
vs
9.15%Industry
At Industry Level
Operating Margin
+12.43%
19.61%Company
vs
7.17%Industry
Above Industry
HCL Technologies Limited demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 51% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 1.34T USD Add
Present Value (Cash Flow Over Next 10 Years) 1.27T USD Add
Value of Operating Assets 2.61T USD Sub-total
Debt 62.76B USD Subtract
Minority Interests 80.00M USD Subtract
Cash 303.51B USD Add
Value of Equity 2.85T USD Sub-total
Number of Shares 2.71B shares Divisor
Estimated Value per Share (Fair Value) 1.05K USD Total
Current Market Price 16.19 USD Reference

Financial Projections

Total FCF Present Value
1.27T USD
Avg Revenue Growth
6.25%
Avg Operating Margin
17.69%
Avg ROIC
39.33%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue1.28T USD1.38T USD1.50T USD1.62T USD1.75T USD1.88T USD2.01T USD2.13T USD2.25T USD2.35T USD2.46T USD
Growth Rate 7.65% 8.16% 8.16% 8.16% 8.16% 7.45% 6.73% 6.02% 5.31% 4.59% 4.59%
PROFITABILITY
Operating Income251.95B USD258.04B USD271.28B USD284.96B USD299.07B USD321.36B USD343.02B USD363.69B USD383.01B USD400.63B USD419.06B USD
Operating Margin 19.61% 18.56% 18.04% 17.52% 17.00% 17.00% 17.00% 17.00% 17.00% 17.00% 17.00%
EBIT (1-tax)188.96B USD193.53B USD203.46B USD213.72B USD224.30B USD237.80B USD250.40B USD261.85B USD271.94B USD280.44B USD293.34B USD
CASH FLOW
Reinvestment16.45B USD17.80B USD19.25B USD20.82B USD20.56B USD27.01B USD25.78B USD24.10B USD21.97B USD22.99B USD152.81B USD
Free Cash Flow172.50B USD175.73B USD184.20B USD192.89B USD203.74B USD210.78B USD224.61B USD237.75B USD249.96B USD257.45B USD140.52B USD
Terminal Value--------------------3.32T USD
Present Value157.22B USD145.97B USD139.46B USD133.10B USD128.13B USD121.01B USD117.91B USD114.31B USD110.25B USD104.34B USD—
EFFICIENCY
ROIC 41.45% 40.98% 41.51% 41.96% 42.31% 43.18% 43.34% 43.38% 43.32% 43.17% 8.83%
Cost of Capital 9.71% 9.71% 9.71% 9.71% 9.71% 9.54% 9.36% 9.18% 9.00% 8.83% 8.83%
Sales/Capital 6.37x 6.37x 6.37x 6.37x 6.37x 4.71x 4.71x 4.71x 4.71x 4.71x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)