ASHOK LEYLAND LTD Fair Value
ASHOKLEY · Capital Goods · Current price ₹170
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹43 | 28% ROE fading to 12% over ~10 yrs, on ₹24 book |
| Relative P/E | ₹169 | EPS × 28.5 peer-median P/E |
| Graham floor | ₹57 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹186 | Street consensus 12-month target price |
Is ASHOK LEYLAND LTD undervalued?
DocStoX estimates the fair value of ASHOK LEYLAND LTD at ₹100 per share, versus the current market price of ₹170. That puts the stock about -41.4% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹43), Relative P/E (₹169), Graham floor (₹57), Analyst target (₹186). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹43 (bear) to ₹100 (base) to ₹186 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on ASHOK LEYLAND LTD
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.