Black Box Limited Fair Value
BBOX · Information Technology · Current price ₹909.15
Is Black Box Limited undervalued?
We estimate the fair value of Black Box Limited at ₹641 per share, against a market price of ₹801. That puts the share price about -20.0% above our estimate, at medium 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: Fair multiple (P/E) (₹641). 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 Black Box Limited spans ₹577 to ₹706. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
How we got this fair value
Every number below is part of the same estimate for Black Box Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹577 – ₹706
Why this method for this business
Relative P/E and EV/EBITDA are the most appropriate models for IT services, which are asset-light and have durable earnings power. These models align with the company's strong growth and moat.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
required inputs missing
- dcf: Not suitable for IT services due to high growth and uncertainty in cash flows
- ev_ebitda: Used but with lower weight due to limited data on EBITDA multiples
What was missing
- Limited data on EV/EBITDA multiples
- No analyst dispersion data for P/E normalization
What drives it
15 inputs, grouped by how strong each claim is
- Sector-median P/E
- 33.56×
- Peers used
- 7
- EPS (TTM)
- 12.99 ₹/share
- Own-history median P/E
- 36.5×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Term: quality
- -5.9%
- Term: growth
- +26.1%
- Term: capital_allocation
- +10.9%
- Term: financial_strength
- +7.6%
- Term: history
- +2.6%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 43/100 (weak/erratic returns) → discount
durable ~15% CAGR (ROCE 22% > hurdle) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: effectively debt-free → premium
history: market paid +9% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- +47.1%
- Fair-multiple confidence
- 82%
- Fair P/E
- 49.38×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Black Box 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 methodologyMore on Black Box Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.