Ram Ratna Wires (NSE:RAMRAT) Intrinsic Value: DCF (Earnings Based): ₹280.10 (As of Jul. 29, 2026) — 37751% Above Median

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Director of Data and Quant Analytics at GuruFocus
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NSE:RAMRAT Ram Ratna Wires Ltd NSE:RAMRAT
92 GF Score
Price ₹456.50
GF Value ₹408.22
Valuation Modestly Overvalued
! 4 Warning Signs
View Full Analysis

What is Ram Ratna Wires Intrinsic Value: DCF (Earnings Based)?

Ram Ratna Wires NSE:RAMRAT +4.69% 92 Intrinsic Value: DCF (Earnings Based) is ₹280.10 as of Jul. 29, 2026, which is 100% below its 10-year median of 0.74. GuruFocus rates NSE:RAMRAT with a GF Score™ of 92/100 and a GF Value™ of ₹408.22 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 468 Industrial Products companies, Ram Ratna Wires ranks worse than 65.81% on this metric.

As of today (2026-07-29), Ram Ratna Wires's intrinsic value calculated from the Discounted Earnings model is ₹280.10.

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

Ram Ratna Wires's Predictability Rank is 4-Stars.

Margin of Safety (Earnings Based) using Discounted Earnings model for Ram Ratna Wires is -62.98%.

The historical rank and industry rank for Ram Ratna Wires's Intrinsic Value: DCF (Earnings Based) or its related term are showing as below:

NSE:RAMRAT' s Price-to-DCF (Earnings Based) Range Over the Past 10 Years
Min: 0.34   Med: 0.74   Max: 1.63
Current: 1.63

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Earnings Based) Ratio of Ram Ratna Wires was 1.63. The lowest was 0.34. And the median was 0.74.

NSE:RAMRAT's Price-to-DCF (Earnings Based) is ranked worse than
65.81% of 468 companies
in the Industrial Products industry
Industry Median: 1.21 vs NSE:RAMRAT: 1.63

Ram Ratna Wires  (NSE:RAMRAT) Intrinsic Value: DCF (Earnings Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book Value per Share, Graham Number, Median Ratio etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.


Be Aware

What you need to know about Discounted Earnings model:

1. The Discounted Earnings model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that are relatively consistent performers.
4. The Discounted Earnings model works poorly for inconsistent performers like cyclicals.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


Ram Ratna Wires Intrinsic Value: DCF (Earnings Based) Related Terms


Ram Ratna Wires Intrinsic Value: DCF (Earnings Based) Historical Data

* Premium members only.

The historical data trend for Ram Ratna Wires's Intrinsic Value: DCF (Earnings Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ram Ratna Wires Intrinsic Value: DCF (Earnings Based) Chart

Ram Ratna Wires Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Intrinsic Value: DCF (Earnings Based)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 107.52 139.98 181.94 305.85

Ram Ratna Wires Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Intrinsic Value: DCF (Earnings Based) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 181.94 180.03 190.80 231.67 305.85

NSE:RAMRAT vs VRT, BE: Intrinsic Value: DCF (Earnings Based) Comparison

For the Electrical Equipment & Parts subindustry, Ram Ratna Wires's Price-to-DCF (Earnings Based), along with its competitors' market caps and Price-to-DCF (Earnings Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ram Ratna Wires Price-to-DCF (Earnings Based) vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Ram Ratna Wires's Price-to-DCF (Earnings Based) distribution charts can be found below:

* The bar in red indicates where Ram Ratna Wires's Price-to-DCF (Earnings Based) falls into.


NSE:RAMRAT
92GF Score
Ram Ratna Wires Ltd NSE:RAMRAT
Intrinsic Value: DCF (Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ram Ratna Wires Intrinsic Value: DCF (Earnings Based) Calculation

This is the intrinsic value calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 14%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 7.02%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = 20%
The Growth Rate in the growth stage is initially set as the default 10-Year EPS without NRI Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year EPS without NRI Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year EPS without NRI Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Ram Ratna Wires's average EPS without NRI Growth Rate in the past 10 years was 21.00%, which is no less than 20%. GuruFocus defaults => Growth Rate: 20%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. EPS without NRI: eps without nri = ₹11.750.
GuruFocus DCF calculator is actually a Discounted Earnings calculator, EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

Ram Ratna Wires's Intrinsic Value: DCF (Earnings Based) for today is calculated as:

Intrinsic Value: DCF (Earnings Based)=EPS without NRI*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.2)/(1+0.14) = 1.0526315789474
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.14) = 0.91228070175439

Intrinsic Value: DCF (Earnings Based)=EPS without NRI*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=EPS without NRI*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=11.750*23.838
=280.10

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(280.1-456.50)/280.1
=-62.98 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

What does a Intrinsic Value: DCF (Earnings Based) of ₹280.10 mean?
Ram Ratna Wires (NSE:RAMRAT) has a Intrinsic Value: DCF (Earnings Based) of ₹280.10 as of Jul. 29, 2026. Intrinsic Value: DCF (Earnings Based) is the stock value based on a two-stage discounted earnings model. View historical data on Ram Ratna Wires and its competitors. This is 37751% above median its historical median of 0.74. Over the past decade, Ram Ratna Wires' Intrinsic Value: DCF (Earnings Based) has ranged from 0.34 to 1.63. According to the industry distribution chart, Ram Ratna Wires ranks #308 out of 468 companies in the Industrial Products industry, placing it in the top 65.8%.
Is Ram Ratna Wires' Intrinsic Value: DCF (Earnings Based) too high?
Ram Ratna Wires' current Intrinsic Value: DCF (Earnings Based) of ₹280.10 is 37751% above median its 10-year median of 0.74. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 1.63. Based on the distribution chart, Ram Ratna Wires ranks #308 out of 468 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Ram Ratna Wires has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ram Ratna Wires' Intrinsic Value: DCF (Earnings Based) compare to VRT and BE?
According to the Industrial Products industry distribution chart, Ram Ratna Wires ranks #308 out of 468 companies for Intrinsic Value: DCF (Earnings Based). This places Ram Ratna Wires in the lower half of its industry. The industry median Intrinsic Value: DCF (Earnings Based) is 1.21. Historically, Ram Ratna Wires' own Intrinsic Value: DCF (Earnings Based) has ranged from 0.34 to 1.63 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: DCF (Earnings Based) for an Industrial Products company?
The median Intrinsic Value: DCF (Earnings Based) among Industrial Products companies is 1.21, based on 468 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (Earnings Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: DCF (Earnings Based) mean?
A high Intrinsic Value: DCF (Earnings Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (Earnings Based) is the stock value based on a two-stage discounted earnings model. View historical data on Ram Ratna Wires and its competitors. For the Industrial Products industry, the median Intrinsic Value: DCF (Earnings Based) is 1.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ram Ratna Wires's current Intrinsic Value: DCF (Earnings Based) is ₹280.10, which is 37751% above median its own 10-year median of 0.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ram Ratna Wires stock overvalued right now?
Based on GuruFocus' analysis, Ram Ratna Wires (NSE:RAMRAT) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹408.22, compared to a current price of ₹456.50 — trading 11.8% above its estimated fair value. The current Intrinsic Value: DCF (Earnings Based) is ₹280.10, which is 37751% above median its 10-year median of 0.74. Ram Ratna Wires' overall GF Score™ is 92/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (Earnings Based) calculated?
Intrinsic Value: DCF (Earnings Based) is calculated from a company's financial statements. For Ram Ratna Wires (NSE:RAMRAT), the current Intrinsic Value: DCF (Earnings Based) is ₹280.10 as of Jul. 29, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ram Ratna Wires (NSE:RAMRAT) Overvalued in 2026?

Based on GuruFocus' analysis, Ram Ratna Wires stock appears to be overvalued. The current stock price of ₹456.50 is trading 11.8% above its estimated GF Value™ of ₹408.22. GuruFocus considers Ram Ratna Wires to be Modestly Overvalued.

Key valuation signals for NSE:RAMRAT:

  • Intrinsic Value: DCF (Earnings Based): ₹280.10 (37751% above median its 10-year median of 0.74)
  • GF Value™: ₹408.22 vs. price of ₹456.50 (11.8% above fair value)
  • GF Score™: 92/100 with 4 warning signs

No single metric tells the full story. See the NSE:RAMRAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ram Ratna Wires Business Description

Other Exchanges 522281:India
Address Bhailal Amin Marg, Gorwa, Ground Floor, Alembic Business Park (West), Vadodara, GJ, IND, 390003
Ram Ratna Wires Ltd engages in the manufacture and sale of enameled copper winding wire and strips. Its products include enameled copper wire, enameled copper strips, enameled aluminum wires, submersible flat cable, corona resistant winding wires, and submersible winding wire. Its segments are Enamelled wires and strips; Copper tubes and pipes and Other. Geographically, it derives a majority of revenue from India.
92GF Score

Get the complete analysis for NSE:RAMRAT

Intrinsic Value: DCF (Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹456.50
Price
₹408.22
GF Value