Period 1 2 3

Actual ESTIMATED
Particular
s 2019 2020 2021 2022
(FCF) in
million(Rs
.) 12,648.00 15,252.00 16,321.00 18,362.00
Estimated
growth
rate(%) 20.59 7.00 12.50

Cost of
Equity
(CAPM
Model) 15.20% 15.20% 15.20% 15.20%
Present
Value 13239.5833333333 12298.2072241512 12010.5403277446
Present Value of 10-year Cash Flow (PVCF) 104332.838985023
terminal Value (growth in perpetuity approach)
we have taken 10-year government bond rate(g) 6.50%
FCF2029 × (1 + g) ÷ (r – g) 

Present Value of Terminal Value (PVTV) (in milion Rs.)  TV / (1 + r)10

Equity VALUE(in million Rs.) 488297.090318667

shares outstanding in (million 1,761.52 current share price
intrinsic value estimate 277.20212675341 495.40

so by comparing The intrinsic value with

 4 5 6 7 8 9 10
ESTIMATED

2023 2024 2025 2026 2027 2028 2029

20,062.32 21,815.77 23,646.11 25,573.27 27,608.90 29,773.44 32,080.88

9.26 8.74 8.39 8.15 7.96 7.84 7.75

15.20% 15.20% 15.20% 15.20% 15.20% 15.20% 15.20%

11391.246161 10752.466211 10116.838651 9497.709203 8900.804562 8332.142048006 7793.30126451981

392860.73703

95436.353291

by comparing The intrinsic value with the current market price it can be said that the firm was overrvalued while writing as intrinsic value
writing as intrinsic value is less than current market price