As of June 12, 2025, MakeMyTrip Ltd has a Discounted Cash Flow (DCF) derived fair value of $129.90 per share. With the current market price at $98.77, this represents a potential upside of 31.5%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $77.23 |
| DCF Fair Value (10-year) | $129.90 |
| Potential Upside (5-year) | -21.8% |
| Potential Upside (10-year) | 31.5% |
| Discount Rate (WACC) | 5.9% - 8.6% |
Revenue is projected to grow from $978 million in 03-2025 to $4395 million by 03-2035, representing a compound annual growth rate of approximately 16.2%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 03-2025 | 978 | 25% |
| 03-2026 | 1220 | 25% |
| 03-2027 | 1474 | 21% |
| 03-2028 | 1801 | 22% |
| 03-2029 | 2196 | 22% |
| 03-2030 | 2645 | 20% |
| 03-2031 | 3050 | 15% |
| 03-2032 | 3424 | 12% |
| 03-2033 | 3743 | 9% |
| 03-2034 | 4088 | 9% |
| 03-2035 | 4395 | 8% |
Net profit margin is expected to improve from 10% in 03-2025 to 18% by 03-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 03-2025 | 95 | 10% |
| 03-2026 | 148 | 12% |
| 03-2027 | 197 | 13% |
| 03-2028 | 262 | 15% |
| 03-2029 | 343 | 16% |
| 03-2030 | 441 | 17% |
| 03-2031 | 515 | 17% |
| 03-2032 | 585 | 17% |
| 03-2033 | 647 | 17% |
| 03-2034 | 714 | 17% |
| 03-2035 | 776 | 18% |
with a 5-year average of $10 million. Projected CapEx is expected to maintain at approximately 3% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 03-2026 | 15 |
| 03-2027 | 21 |
| 03-2028 | 28 |
| 03-2029 | 38 |
| 03-2030 | 53 |
| 03-2031 | 63 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 30 |
| Days Inventory | 0 |
| Days Payables | 79 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | 182 | 13 | 34 | 3 | 131 |
| 2027 | 242 | 18 | 42 | 17 | 166 |
| 2028 | 321 | 24 | 51 | 14 | 233 |
| 2029 | 421 | 31 | 62 | 17 | 311 |
| 2030 | 545 | 40 | 75 | 25 | 405 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 77.23 | -21.8% |
| 10-Year DCF (Growth) | 129.90 | 31.5% |
| 5-Year DCF (EBITDA) | 50.54 | -48.8% |
| 10-Year DCF (EBITDA) | 85.22 | -13.7% |
Is MakeMyTrip Ltd (MMYT) a buy or a sell? MakeMyTrip Ltd is definitely a buy. Based on our DCF analysis, MakeMyTrip Ltd (MMYT) appears to be significantly undervalued with upside potential of 31.5%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $98.77.