CIPLA LTD Fair Value
CIPLA · Healthcare · Current price ₹1,417
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹427 | 12% ROE fading to 12% over ~3 yrs, on ₹426 book |
| Relative P/E | ₹1,878 | EPS × 39.1 peer-median P/E |
| Graham floor | ₹678 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹1,524 | Street consensus 12-month target price |
Is CIPLA LTD undervalued?
DocStoX estimates the fair value of CIPLA LTD at ₹991 per share, versus the current market price of ₹1,417. That puts the stock about -30.1% 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 (₹427), Relative P/E (₹1,878), Graham floor (₹678), Analyst target (₹1,524). 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 ₹427 (bear) to ₹991 (base) to ₹1,878 (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 CIPLA 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.