Fair value and valuation

Fair value is DocStoX's estimate of what a company is worth, based on its own reported financials, set against the price it currently trades at. It is a model's output, not a price target and not a prediction of where the share price will go.

Where you see it#

The Verdict section of a stock page shows the fair value as a rupee figure, alongside how far the current price sits above or below it. Selecting the figure opens the working behind it: which valuation methods ran, how they were weighted, and the bear, base and bull range around the estimate.

The Valuation hub lists six ways to look at the same estimate for any company: Fair Value (the headline number and range), Intrinsic Value (the same number framed as a margin of safety against the price), DCF (the cash-flow lens), Valuation (the number alongside P/E, P/B and dividend yield), Peer Comparison and Financial Ratios. Search a company there to open its full valuation.

Sign in to see it#

Fair value is behind sign-in, not behind Pro: a signed-out visitor sees "Fair value locked", and any signed-in account, Free or Pro, sees the number, the range and the star rating. The methodology behind the estimate is visible even while it is locked, so you can see how it would be built before you sign in.

When there is no fair value#

Some stock pages show "Fair value not available" instead of a number. DocStoX would rather publish nothing than a number it does not trust. This happens when:

• the business does not fit a standard valuation model (for example a loss-making company, an insurer, or a holding company whose value sits in a stake it owns rather than its own earnings), or
• the company's reported data is too thin or inconsistent for the model to run safely.

In both cases the page shows the same plain message rather than guessing at a number to fill the gap. It does not show a star rating either, since a rating next to "not available" would contradict itself.

The short version of how it is built#

DocStoX runs several independent valuation methods on a company's reported financials, drops any whose inputs look unreliable, and blends the rest, weighted by how trustworthy each one is for that company. How long the company can keep earning returns above its cost of capital (its economic moat) sets the model's time horizon; how predictable the business is sets how wide the bear-to-bull range is. Where the methods disagree, the page shows the spread rather than hiding it behind one confident number.

This page keeps things at the level of what you see and what it means. For the maths behind each method, the inputs it uses and how the weighting works, see Fair value methodology.

• Stock pagesWhere the Verdict section sits on the page.
• Fair value methodologyThe full method, the models and their assumptions.