This study examines the intrinsic valuation of NTPC Limited using the Discounted Cash Flow (DCF) method based on a five-year balance sheet analysis from FY 2020–21 to FY 2024–25. The research adopts a quantitative and analytical approach, utilizing secondary data from financial statements, annual reports, and relevant literature to assess the company’s financial performance, capital structure, and cash flow generation capacity.

The study applies the Free Cash Flow to Firm (FCFF) approach to estimate future cash flows and determine enterprise and equity value. The findings reveal that NTPC has maintained stable growth, with assets growing at a CAGR of 4.43% and equity at 7.96%, along with a declining Debt–Equity ratio from 1.38x to 1.15x, indicating improved financial stability. The DCF valuation estimates an enterprise value of ₹10,27,160 Cr. and an equity value of ₹8,41,917 Cr., resulting in a fair value of ₹15,102 per share.

The analysis highlights that a significant portion of value (76.4%) is derived from terminal value, reflecting the long-term and stable nature of cash flows in the power sector. Sensitivity analysis further indicates that valuation is highly dependent on key assumptions such as Weighted Average Cost of Capital (WACC) and growth rates. The study also considers NTPC’s strategic transition towards renewable energy, which enhances its future growth potential.

Overall, the study concludes that NTPC Limited is fundamentally strong, financially stable, and well-positioned for long-term value creation, making it a reliable investment option in the power sector. However, the accuracy of valuation is subject to assumptions and external factors.

Keywords: Discounted Cash Flow (DCF), Free Cash Flow to Firm (FCFF), Intrinsic Valuation, NTPC Limited, WACC, Financial Performance, Capital Structure, Power Sector, Terminal Value, Sensitivity Analysis