Aditya Birla Fashion and Retail Limited Valuation
ABFRL · Consumer Services · Current price ₹44.88
Is Aditya Birla Fashion and Retail Limited undervalued?
We estimate the fair value of Aditya Birla Fashion and Retail Limited at ₹76 per share, against a market price of ₹50. That puts the share price about +50.7% below our estimate, at low confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Discounted cash flow (2-stage) (₹76). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Aditya Birla Fashion and Retail Limited spans ₹68 to ₹83. That range is wide, which is the honest signal here: read the range rather than the single number. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Valuation multiples
Aditya Birla Fashion and Retail Limited trades at a P/E of -7.4x and a P/B of 1.1x, with a dividend yield of 0.0%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
How we got this fair value
Every number below is part of the same estimate for Aditya Birla Fashion and Retail Limited. Nothing here is a target price or a forecast of where the share price will go.
The inputs are thin or the models disagree sharply. This is our least reliable kind of estimate, so read the range rather than the single number.
Estimate range ₹68 – ₹83
Why this method for this business
EV/Sales and DCF are appropriate for a retail business with a narrow moat and cyclical earnings patterns, especially given the loss-making status and the need to normalize for recent performance.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFE path
required inputs missing
- Discounted cash flow (2-stage) was already used but EV/Sales is more relevant for a loss-making business with no clear cash flow trajectory.
- EV/EBITDA is not used due to negative EBITDA in recent years.
What was missing
- Lack of forward EBITDA estimates
- Limited data on brand strength and customer retention
- Insufficient information on long-term cost structure
What drives it
12 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 759 ₹cr
- Net debt
- 6,189 ₹cr
fcf_norm (median ≤5y positive)
gross debt (cash n/a)
- Discount rate (r)
- 14.4%
- Beta
- 1
COE (building-block)
bottom-up industry
- Stage-1 start growth
- 8%
- Fade shape
- linear
- Terminal growth (g)
- 4.84%
- Stage-1 years
- 8 y
lifecycle-floor
lifecycle Turnaround
macro terminal × quality premium
lifecycle Turnaround horizon
- Lifecycle stage
- Turnaround
- Quality premium
- 0.969×
forecast engine (L20)
moat None + capital allocation
- Path
- FCFE
- Terminal-value fraction
- 0.507
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Aditya Birla Fashion and Retail Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyUnderstand the ratios
More on Aditya Birla Fashion and Retail Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.