Intrinsic Valuation of Nifty Energy Index Companies Using P/E Multiple Approach

@article{1713811,
      author = {Sanapathi Naga Ramesh},
      title = {Intrinsic Valuation of Nifty Energy Index Companies Using P/E Multiple Approach},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {9},
      number = {7},
      pages = {1950-1952},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1713811.pdf},
      abstract = {This study evaluates the intrinsic valuation of companies listed under the Nifty Energy Index using a price?earnings (P/E) multiple?based relative valuation framework. The research examines 40 energy-sector companies across four sub-sectors?Renewables, Power Generation, Oil & Gas, and Utilities?to identify overvalued, undervalued, and fairly valued stocks. Secondary data were collected from NSE, BSE, company annual reports, and financial databases for the period FY 2021?22 to FY 2024?25, with market prices as of April 30, 2025. Intrinsic values were computed by applying sector-specific benchmark P/E multiples to trailing twelve-month earnings per share. The findings reveal significant valuation disparities within the index, with approximately 70 percent of companies trading above their intrinsic values, driven primarily by growth expectations, policy incentives, and ESG-related sentiment. Conversely, select PSU utilities and oil & gas companies exhibit undervaluation due to stable cash flows and dividend yields. The study provides practical insights for investors, portfolio managers, and policymakers by highlighting mispricing patterns and sector-specific valuation drivers in India?s energy transition.},
      keywords = {Intrinsic Valuation, P/E Multiples, Nifty Energy Index, Energy Sector, Relative Valuation},
      month = {January},
      doi = {https://doi.org/10.64388/IREV9I7-1713811}
  }