Reliance Industries’ DCF Stock Analysis

Here’s my assumptions for $RS ( ▼ 0.02% ) :

Risk Free Rate (10 Years Interest Rate Swap): 4.13%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 2%

Historical Data

Revenue growth in the last 10 years (CAGR): 4%

Earnings growth in the last 10 years (CAGR): 10.88%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): -2.58%

Future Assumptions

End of Year FCF growth: 2%

Growth until end of 2026: 4%

Growth until end of 2034: 4%

Perpetual growth: 2.5%

Net Debt: 1.482B

Restricted Stock Units Present Value Assumption: $0.057B

Stock Valuation based on these assumptions: $293

Last update 05/16/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Reliance Industries (RS) and I don’t plan to add a position in the coming days.