CEAT LIMITED Fair Value
CEATLTD · Automobile and Auto Components · Current price ₹3,400
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹1,286 | 16% ROE fading to 14% over ~3 yrs, on ₹1247 book |
| Relative P/E | ₹3,726 | EPS × 21.6 peer-median P/E |
| Graham floor | ₹2,200 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹3,917 | Street consensus 12-month target price |
Is CEAT LIMITED undervalued?
DocStoX estimates the fair value of CEAT LIMITED at ₹2,421 per share, versus the current market price of ₹3,400. That puts the stock about -28.8% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹1,286), Relative P/E (₹3,726), Graham floor (₹2,200), Analyst target (₹3,917). 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 ₹1,286 (bear) to ₹2,421 (base) to ₹3,917 (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 CEAT LIMITED
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.