Zee Entertainment Enterprises Limited

ZEEL.BO•broadcasting

Current Price

115.10INR

per share

Fair Value

123.79INR

Undervalued

7.0%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 5.20%, higher than industry average of 1.57%.

Growth Trajectory

Profitability

In the growth phase company makes 12.58% profit on every dollar of sales, higher than industry average of 10.03%.

Profitability Trajectory

Risk Profile

Investors expect at least 5.89% 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

94.64B INR

Equity Value

118.90B INR

FCF Yield

37.63%

Average ROIC

7.21%

Cost of Capital

6.97%

P/E Ratio

20.28x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	79.88B INR	86.37B INR
Operating Income or EBIT	10.48B INR	7.32B INR
Interest Expense	349M INR	721M INR
Book Value Of Equity	115.33B INR	108.73B INR
Book Value Of Debt	3.21B INR	2.30B INR
Cash and Marketable Securities	27.47B INR	11.21B INR
Number of Shares Outstanding	960.52M	--
Minority interests	0 INR	0 INR
Current Stock Price	115.10 INR	--
Effective Tax Rate	48.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

-9.08%

-7.52%Company

1.56%Industry

Below Industry

Operating Margin

+3.10%

13.12%Company

10.02%Industry

Above Industry

Zee Entertainment Enterprises Limited demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 74% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	69.66B INR	Add
Present Value (Cash Flow Over Next 10 Years)	24.97B INR	Add
Value of Operating Assets	94.64B INR	Sub-total
Debt	3.20B INR	Subtract
Minority Interests	—	Subtract
Cash	27.46B INR	Add
Value of Equity	118.90B INR	Sub-total
Number of Shares	960.52M shares	Divisor
Estimated Value per Share (Fair Value)	123.79 INR	Total
Current Market Price	115.10 INR	Reference

Financial Projections

Total FCF Present Value

24.97B INR

Avg Revenue Growth

4.75%

Avg Operating Margin

12.45%

Avg ROIC

7.21%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	85.69B INR	90.15B INR	94.85B INR	99.78B INR	104.98B INR	110.32B INR	115.82B INR	121.46B INR	127.25B INR	133.16B INR	139.36B INR
Growth Rate	7.28%	5.20%	5.20%	5.20%	5.20%	5.09%	4.98%	4.87%	4.76%	4.65%	4.65%
PROFITABILITY
Operating Income	11.24B INR	11.50B INR	11.93B INR	12.37B INR	12.82B INR	13.48B INR	14.15B INR	14.84B INR	15.54B INR	16.27B INR	17.02B INR
Operating Margin	13.12%	12.76%	12.58%	12.39%	12.21%	12.21%	12.21%	12.21%	12.21%	12.21%	12.21%
EBIT (1-tax)	5.84B INR	5.98B INR	6.20B INR	6.43B INR	6.67B INR	7.49B INR	8.37B INR	9.32B INR	10.32B INR	11.39B INR	11.91B INR
CASH FLOW
Reinvestment	2.99B INR	3.15B INR	3.31B INR	3.48B INR	3.59B INR	4.84B INR	4.97B INR	5.09B INR	5.21B INR	5.45B INR	6.24B INR
Free Cash Flow	2.85B INR	2.83B INR	2.88B INR	2.94B INR	3.07B INR	2.65B INR	3.40B INR	4.22B INR	5.11B INR	5.93B INR	5.67B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	134.23B INR
Present Value	2.69B INR	2.52B INR	2.43B INR	2.34B INR	2.31B INR	1.87B INR	2.24B INR	2.58B INR	2.88B INR	3.08B INR	—
EFFICIENCY
ROIC	6.42%	6.36%	6.38%	6.39%	6.41%	6.96%	7.45%	7.93%	8.42%	8.91%	8.88%
Cost of Capital	5.88%	5.88%	5.88%	5.88%	5.88%	6.48%	7.08%	7.68%	8.28%	8.88%	8.88%
Sales/Capital	1.48x	1.48x	1.48x	1.48x	1.48x	1.13x	1.13x	1.13x	1.13x	1.13x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)