ADANIPORTS.BO
ADANI PORTS AND SPECIAL ECONOMClosedADANIPORTS.BO discounted cash flow valuation
ADANIPORTS.BO Fair Value
Reverse DCF: today's price implies 28.5% a year of FCF growth for years 1–5, against 19.3% in this model.
Model: 19.3% from analyst next-year EPS & revenue growth. Fades linearly to terminal growth by year 10.
Model: 7.33% (CAPM, see the build-up).
Long-run growth after year 10; keep it at or below nominal GDP.
Value Bridge
| PV of free cash flow, years 1–10 | INR 827.25B |
|---|---|
| PV of terminal value (70% of EV) | INR 1.97T |
| Enterprise value | INR 2.80T |
| + Cash & investments | INR 72.85B |
| − Total debt | −INR 633.99B |
| Equity value | INR 2.24T |
| ÷ Shares outstanding | 2.30B |
| Value per share | INR 970.23 |
| Market cap | INR 4.02T |
Discount Rate Build-up
| Risk-free rate (10-yr Treasury) | 5.18% |
|---|---|
| Beta (clamped 0.5–2.5) | 0.50 |
| Equity risk premium | 5.00% |
| Cost of equity (CAPM) | 7.68% |
| Pre-tax cost of debt | 5.92% |
| Tax rate | 13.9% |
| Debt / (equity + debt) | 13.6% |
| WACC | 7.33% |
Cost of debt is interest expense ÷ total debt, held between the risk-free rate and 12%.
Free Cash Flow: History and Projection
Sensitivity: Value per Share
| WACC ↓ / g → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.33% | 1,408.11 | 1,625.40 | 1,919.43 | 2,339.60 | 2,989.31 |
| 6.33% | 1,037.03 | 1,162.17 | 1,319.95 | 1,525.08 | 1,802.65 |
| 7.33% | 794.58 | 874.18 | 970.23 | 1,088.43 | 1,237.47 |
| 8.33% | 624.19 | 678.29 | 741.65 | 816.88 | 907.66 |
| 9.33% | 498.19 | 536.75 | 580.94 | 632.10 | 692.02 |
Green is above today's price, red below (full colour at ±30%). The outlined centre cell is the current inputs.
Projected Cash Flows
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Base (FY2026) | — | INR 50.36B | — | — |
| Year 1 | 19.3% | INR 60.08B | 0.932 | INR 55.98B |
| Year 2 | 19.3% | INR 71.67B | 0.868 | INR 62.22B |
| Year 3 | 19.3% | INR 85.51B | 0.809 | INR 69.16B |
| Year 4 | 19.3% | INR 102.01B | 0.754 | INR 76.87B |
| Year 5 | 19.3% | INR 121.70B | 0.702 | INR 85.44B |
| Year 6 | 15.9% | INR 141.10B | 0.654 | INR 92.30B |
| Year 7 | 12.6% | INR 158.85B | 0.609 | INR 96.81B |
| Year 8 | 9.2% | INR 173.49B | 0.568 | INR 98.52B |
| Year 9 | 5.9% | INR 183.66B | 0.529 | INR 97.17B |
| Year 10 | 2.5% | INR 188.25B | 0.493 | INR 92.79B |
Method
Two-stage free-cash-flow model, the same as the bot's lgf dcf: five years at the chosen growth rate, a straight-line fade to terminal growth by year ten, then a Gordon-growth terminal value. Everything is discounted at WACC.
Base cash flow is the trailing four quarters of operating cash flow minus capital expenditure (the latest fiscal year when quarters are missing). Default growth uses analyst long-term growth when Yahoo publishes it, else the average of next year's EPS and revenue growth, else revenue CAGR, held between −5% and 25%.
A DCF is only as good as its inputs. The terminal value is usually most of the answer, so read the sensitivity grid before the headline number. This is a model, not investment advice.