BSE Ltd.
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DCF VALUATION ANALYSIS OF BSE

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Conclusion: OVERVALUED

:-OVERVIEW

BSE Limited has shown strong financial growth in recent years. Its revenue jumped from ₹924.84 crore in FY23 to ₹1,592.50 crore in FY24 (a 72% increase), and further surged to ₹3,212 crore in FY25, doubling year-on-year. EBITDA grew impressively to ₹1,779 crore in FY25 with a 60% increase, and EBIT reached ₹1,670 crore, up 56%. Net profit also rose significantly to ₹1,112 crore, with earnings per share increasing to ₹81. Dividend per share improved to ₹23, reflecting healthy returns

DCF:
-The valuation was performed using a Discounted Cash Flow (DCF) approach based purely on verified financial data and market risk parameters without relying on user-specific growth assumptions.
-The cost of equity was calculated using an adjusted risk-free rate plus equity risk premium multiplied by beta, resulting in a discount rate of approximately 13.58%. The terminal growth rate was conservatively taken as 4%. Using these reliable inputs and actual EBIT cash flows, the intrinsic enterprise value was estimated at around ₹36,839 crore, translating to an intrinsic value per share of approximately ₹1,364.

-Currently, BSE’s market price is around ₹2,480 per share, which is substantially higher than the intrinsic value derived from fundamentals, indicating the stock is trading at a significant premium. This valuation is grounded in audited company financials and globally accepted valuation methodologies, providing a trustworthy reference point for investors.

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