Biocon Limited DCF Valuation
BIOCON · Healthcare · Current price ₹349.2
Biocon Limited cash-flow valuation
Our discounted cash flow (2-stage) values Biocon Limited at ₹24 per share. implied value is <0.2× the price (likely a data error). A discounted cash flow is only as good as the cash-flow path it assumes, so the assumptions behind it are listed in full below.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Biocon Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for Biocon 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 ₹99 – ₹121
Why this method for this business
Biocon is an asset-light compounder in the pharmaceutical sector, where earnings power and a durable moat are key. A relative P/E model captures its earnings potential and sector positioning, while a DCF model accounts for its growth and discount rate assumptions.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
- ev_ebitda is less relevant for a high-growth, asset-light business with strong earnings power
- forward-looking DCF is not used due to the lack of reliable forward EPS data and the volatility of the sector
What was missing
- Lack of forward EPS data for precise DCF modeling
- Limited historical data on sector multiples for more accurate relative P/E analysis
What drives it
15 inputs, grouped by how strong each claim is
- Sector-median P/E
- 34.81×
- Peers used
- 30
- EPS (TTM)
- 3.36 ₹/share
- Own-history median P/E
- 53.6×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Term: quality
- -8.8%
- Term: growth
- -3.9%
- Term: capital_allocation
- -12.6%
- Term: financial_strength
- +4.8%
- Term: history
- +16.2%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 37/100 (weak/erratic returns) → discount
weak ~2% CAGR (ROCE 9% < 12% hurdle (growth not value-accretive)) → discount
capital allocation: falling ROCE / weak cash generation → discount
financial strength: effectively debt-free → premium
history: market paid +54% 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
- -5.6%
- Fair-multiple confidence
- 71%
- Fair P/E
- 32.86×
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 Biocon 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 Biocon Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.